HomeMy WebLinkAbout14-002 Authorizing Short-term interfund loans to the General and Street Capital Funds from the System Development Charges and Equipment Rental and Revolving Funds Resolution 14-002, Short Teri Interfund Loans
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RESOLUTION NO. 14-002
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PORT
TOWNSEND, WASHINGTON, AUTHORIZING SHORT TERM INTERFUND LOANS
TO THE GENERAL AND STREET CAPITAL FUNDS FROM THE SYSTEM
DEVELOPMENT CHARGES AND EQUIPMENT RENTAL AND REVOLVING FUNDS
IN AN AMOUNT NOT TO EXCEED $350,000 AS NEEDED FOR CURRENT
OPERATIONS
WHEREAS, the General and Street capital projects are funded primarily on federal and
state sources and discretionary cash reserves have been reduced in supporting the new CIP
schedule; and
WHEREAS, the majority of receipts for projects will be collected on a reimbursement
basis within 30 to 60 days of City submittal of documentation; and
WHEREAS, the General and Street Capital Funds will continue to incur obligations for
payment before payments are collected requiring sufficient cash flow to honor obligations; and
WHEREAS, the city is in the process of reviewing banking services and establishing a
line of credit to support short term cash flow needs; and
WHEREAS, the System Development Charges Fund (Fund 4195), and the Equipment
Rental and Revolving Fund (Fund 4500) contain sufficient cash reserves to provide short term
(less than 90 days) inter-fund loans to the General and Street Capital Funds 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. Until such time as the City establishes a line of credit to support short term
cash flow needs, the City of Port Townsend Finance Director is hereby authorized and directed
to make short term inter-fund loans in an amount not to exceed $350,000 from the System
Development Charges Fund (Fund 4195), and/or the Equipment Rental and Revolving Fund
(Fund 4500) to the General and Street Capital Funds. Any such loan shall bear interest at a rate
of 0.25%per annum and shall be repaid within five (5) days upon receipt of reimbursed state and
federal assistance.
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.
Resolution 14-002, Short Teri Interfund Loans
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ADOPTED by the City Council of the City of Port Townsend at a regular meeting
thereof, held this sixth day of January 2014.
David King, Mayor
Attest: Approved as to form:
Pamela Kolacy, MMC, City Clerk John Watts, City Attorney