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HomeMy WebLinkAbout10-007 Short Term Interfund LoansResolution 10-007, Short Term (nterfund Loans Page 1 qf7 RESOLUTION NO. 10-007 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PORT TOWNSEND, WASHINGTON, AUTHORIZING SHORT TERM INTERFUND LOANS TO THE GENERAL FUND FROM THE OGWS TRANSMISSION PIPELINE TRUST FUND (FUND #417) AND/OR THE EQUIPMENT RENTAL AND REVOLVING FUND (FUND #500) IN AN AMOUNT NOT TO EXCEED $150,000 AS NEEDED FOR CURRENT OPERATIONS WHEREAS, the General Fund cash reserves have been reduced in supporting new Library Fund and Community Service Fund initiatives; and WHEREAS, the majority of General Fund tax receipts will not be collected until the months of April/May and October/November each year; and WHEREAS, the General Fund will continue to incur obligations for payment before tax payments are collected requiring sufficient cash flow to honor obligations. WHEREAS, the OGWS Transmission Pipeline Trust Fund (Fund #417), and the Equipment Rental and Revolving Fund (Fund #500) contain sufficient cash reserves to provide interfund loans to the General Fund for short term cash flow needs. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Port Townsend as follows: SECTION 1. The City of Port Townsend Finance Director is hereby authorized and directed to make short term interfund loans in an amount not to exceed $150,000 from the OGWS Transmission Pipeline Trust Fund (Fund #417), or the Equipment Rental and Revolving Fund (Fund #500) to the General Fund. This loan shall bear interest at a rate of 0.25% per annum and shall be repaid to the OGWS Transmission Pipeline Trust Fund on or before December 31, 2010. SECTION 2. Severability. If any provision of this Resolution or its application to any person or circumstance is held invalid, the remainder of the Resolution, or the application of the provision to other persons or circumstances is not affected. SECTION 3. Effective Date. This Resolution shall take effect and be in force immediately upon its passage. ADOPTED by the City Council of the City of Port Townsend at a regular meeting thereof, held this tifteenth day of March, 2010. J Yl , t~.l;c-i~~-e ~~-z~-E~Z~~ Michelle Sandoval, Mayor t: ~/ d;-C,tt.C i ' 'i.(~% Pamela Kolacy, MMC, City C k Ap~pr~oved as to form: John Watts, City Attorney