RES 20-779 - Authorizing Revolving Inter-Fund Loan RESOLUTION NO. 20-779
A RESOLUTION of the City of Federal Way,Washington,authorizing a
revolving Inter-fund Loan of up to $400,000, not to exceed three years,
from the General Fund to the Community Development Block Grant
Fund to fund the difference caused by timing of grant reimbursement
and spending of grant funds.
WHEREAS, the Community Development Block Grant Fund has a timing difference
between the time the grant is reimbursed and the spending of grant funds; and
WHEREAS,the Community Development Block Grant Fund will need up to $400,000 to
fund the difference between grant reimbursement and grant spending; and
WHEREAS, the City's General Fund has an adequate fund balance to provide a revolving
inter-fund loan,and such funds are being invested in the State Investment Pool at the current rate of
1.77% (as of December, 2019); and
WHEREAS,the City is paying 2.58%per annum on its last 2-year General Obligation Bond
issued in 2019;
WHEREAS, the City's General Fund will earn 23 basis points more than the State
Investment Pool current rate of 1.77% from a revolving Inter-Fund loan.
NOW THEREFORE, THE CITY COUNCIL OF THE CITY OF FEDERAL WAY,
RESOLVES AS FOLLOWS:
Secti o i' 1.The Community Development Block Grant Fund is authorized to borrow from the
City's General Fund an amount of up to$400,000,for the purpose of funding the difference caused
by the timing of grant reimbursement and grant spending. The Term of the revolving loan shall be
for a period not to exceed three years from the day of the first advance at an annual interest rate of
Resolution No. 20-779 Page I of 3
2.0%(current Washington State Investment Pool's earning rate is 1.77%as of December,2019).The
Community Development Block Grant Fund may pay off the revolving loan or make extra payments
at any time during the life of the loan.
Section 2. The Finance Director is authorized to process and administer a temporary
revolving loan of up to $400,000 from the available cash of the General Fund, where money
deposited therein is not immediately needed for the purposes of that fund, to the Community
Development Block Grant Fund.
Section 3.S�eyer abil t .If any section,sentence,clause or phrase of this resolution should be
held to be invalid or unconstitutional by a court of competent jurisdiction, such invalidity or
unconstitutionality shall not affect the validity or constitutionality of any other section, sentence,
clause, or phrase of this resolution.
Section 44 Corrections. The City Clerk and the codifiers of this ordinance are authorized to
make necessary corrections to this ordinance including, but not limited to, the correction of
scrivener/clerical errors, references, ordinance numbering, section/subsection numbers and any
references thereto.
Section 5.Ratification.Any act consistent with the authority and prior to the effective date of
this resolution is hereby ratified and affirmed.
Section 6.Effective Date.This resolution shall be effective immediately upon passage by the
Federal Way City Council.
RESOLVED BY THE CITY COUNCIL OF THE CITY OF FEDERAL WAY,
WASHINGTON this 4th day of February, 2020.
[signatures to follow]
Resolution No. 20-779 Page 2 of 3
CITY OF FEDERAL WAY:
` E . .EI��L, MAYOR �
ATTEST:
TEH J C ' COT I `I EY', CMC, CITY CLERK
APPROVED AS TO FORM:
J. RYAN CALL, CITY ATTORNEY
FILED WITH THE CITY CLERK: 01/29/2020
PASSED BY THE CITY COUNCIL: 02/04/2020
RESOLUTION NO.: 20-779
Resolution No. 20-779 Page 3 of 3