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HomeMy WebLinkAbout2641 Supplemental Budget AppropriationORDINANCE 7~ ~)c// AN ORDINANCE appropriating the sum of $144,541 to the Current Expense Fund; and amending the 1998 Budget; and authorizing an interfund loan in the amount $140,000 from the Equipment Rental Fund to the Current Expense Fund and providing for repayment of principal and interest; making findings and declaring an emergency. THE CITY COUNCIL OF THE CITY OF PORT TOWNSEND, UPON REVIEW OF THE 1998 BUDGET, MAKES THE FOLLOWING FINDINGS: FINDING ONE: Current Expense Fund - Fire Department The Fire Department needs capital improvements to its building to provide necessary facilities to serve the public. FINDING TWO: Current Expense Fund The Current Expense Fund does nOt have sUfficient resources to pay for capital improvements. · FINDING THREE: Equipment Rental Fund The Equipment Rental Fund has sufficient resources to loan moneys to the Current Expense Fund. Whereas, the above findings are due to events which could not have reasonably been known at the time of adoption of the 1998 Budget; THE CITY COUNCIL OF THE CITY OF PORT TOWNSEND IN REGULAR SESSION ASSEMBLED DOES ORDAIN AS FOLLOWS: Section 1. The sum of ONE HUNDRED FORTY THOUSAND DOLLARS ($140,000) is hereby appropriated as a supplement to the 1998 Current Expense Fund Fire Department Budget from an interfund loan, and the sum of FIVE THOUSAND ONE HUNDRED NINE DOLLARS ($4,541) is hereby appropriated as a supplement to the 1998 Current Expense Fund Fire Department Budget from Current Expense fund balance. Section 2. An interfund loan in the amount of $140,000 is hereby authorized from the Equipment Rental Fund to the Current Expense Fund. The City Finance Director is hereby directed to make such transfer, and the Mayor and the Finance Director are hereby authorized to draw warrants in accord with same. Page 1 Section 3. Repayment of the above authorized loan shall be made according to the repayment schedule as specified in Attachment A, together with interest at an annual rate of 5.56 percent. The City Council intends to repay this interfund loan with available resources from the Current Expense Fund and/or with proceeds from tax exempt Councilmanic bonds in the future amounting to not more than the authorized interfund loan principal and accrued interest. Section 4 There is hereby found and declared to be an emergency requiring the foregoing appropriations to the 1998 budget. Section 5 This ordinance shall take effect upon its passage, approval, and publication in the form and manner provided by law. READ for the first time on May 4, 1998. Council and approved by the Mayor on Ordinance zb q l Read for the second and third times, passed by the City Approve2~f~~ffr~].'ff /? Julie McCj?lloch, Mayor Page 2 Attachment A City of Port Townsend Loan Amortization Schedule - General Fund -Fire Department Purpose of loan: Building improvements to the Fire Hall Source of loan funds: Equipment Rental Fund Date of loan: June 1, 1998 Loan amount $140,000 Interest rate 0.0556 Term 4 years 7 months Payment Interest Principal Payment Number Balance ~Portion Portion Amount 1 December31, 1998 $140,000 $4,541 $0 2 December31, 1999 $140,000 $7,784 $15,000 3 December 31, 2000 $125,000 $6,950 $20,000 4 December31, 2001 $105,000 $5,838 $50,000 5 December 31, 2002 $55,000 $3,058 $55,000 $4,541 $22,784 $26,95O $55,838 $58,058 To~ls $28,171 $140,000 $168,171 Notes: 1 . Interest rate is the current per annum rate earned by city investments with the State Treasurer.