CITY OF SEATTLE
ORDINANCE __________________
COUNCIL BILL __________________
title
AN ORDINANCE relating to City Finances; creating and changing the names of funds in the City Treasury; amending Ordinance 126161, which authorized an interfund loan; amending Ordinance 126237, which adopted the 2021 Budget, including the 2021-2026 Capital Improvement Program (CIP); changing appropriations to various departments and budget control levels, and from various funds in the Budget; and ratifying and confirming certain prior acts.
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WHEREAS, after regular inspection revealed accelerated and abnormal cracking of the concrete structure of the West Seattle High-Rise Bridge, The City of Seattle (“City”) made the decision to close the bridge to all vehicle traffic March 23, 2020; and
WHEREAS, the City Council approved expenditures and bridge financing through authorization of an interfund loan in Ordinance 126161 in anticipation of a 2021 LTGO Taxable bond issuance; and
WHEREAS, Ordinance 126161 also created the 2021 LTGO Taxable Bond Fund (36810) and appropriations for the West Seattle Bridge Immediate Response CIP project authorizing the expenditure of funds out of the 2021 LTGO Taxable Bond Fund; and
WHEREAS, the City, upon advice of the City’s bond counsel, wished to preserve the potential to reimburse the expenditures for the West Seattle Bridge Immediate Response project from lower cost tax-exempt bonds and wished to clarify that the name of the fund was not intended to limit the City’s ability to take advantage of the lowest cost financing option available; and
WHEREAS, the 2021 Adopted Budget appropriated and 2021-2026 Capital Improvement Program programmed additional funds in the 2021 LTGO Taxable Bond Fund for the Overlook Walk and East West Connections Project (MC-TR-C073) and the Aquarium Expansion (MC-PR-21006) project; and
WHEREAS, to reflect the updated guidance on permissible bond issuance it is necessary to update the Fund name and appropriations for these projects in 2021; NOW, THEREFORE,
BE IT ORDAINED BY THE CITY OF SEATTLE AS FOLLOWS:
Section 1. Sections 1 through 3 of Ordinance 126161 are amended as follows:
Section 1. A new 2021 ((LTGO Taxable)) West Seattle Bridge Repair LTGO Bond Fund (36810) is created in the City Treasury, into which the principal proceeds and any premium received from the sale and delivery of limited tax general obligation bonds ((in 2021)) for the West Seattle Bridge Immediate Response and West Marginal Way Safe Street and Accessibility Improvements CIP projects shall be deposited for the purpose of paying all or part of the costs of various elements of the City’s capital improvement program and other City purposes approved by ordinance. The Fund shall receive earnings on its positive balances and pay interest on its negative balances. The Director of Finance is authorized to create other Accounts or Subaccounts as may be needed.
Section 2. The Director of Finance is authorized to make a non-revolving loan of up to $50 million principal and interest outstanding from the Construction and Inspections Fund to the 2021 ((LTGO Taxable)) West Seattle Bridge Repair LTGO Bond Fund, created by Section 1 of this ordinance, to provide bridge financing for expenditures related to the West Seattle Bridge Immediate Response project (MC-TR-C110) and the West Marginal Way Safe Street and Accessibility Improvements project (MC-TR-C103) that will be financed by authorized, ((taxable)) limited tax general obligation (LTGO) bond proceeds. The loan is to be repaid no later than December 31, 2021, with interest on the loan at the rate of return of the City’s Consolidated Cash Pool. The entire principal and interest amount of the loan drawn is intended to be repaid with proceeds from the future sale of ((taxable) LTGO bonds issued in 2021.
Section 3. The Director of Finance may effectuate the loan authorized in Section 2 of this ordinance by transferring cash from the Construction and Inspections Fund to the 2021 ((LTGO Taxable)) West Seattle Bridge Repair LTGO Bond Fund, or by carrying the 2021 ((LTGO Taxable)) West Seattle Bridge Repair LTGO Bond Fund in a negative cash position, in an amount not to exceed $50 million until no later than December 31, 2021, or until repayment with proceeds from the sale of ((taxable LTGO)) limited tax general obligation bonds in 2021, whichever is earlier. The Director of Finance is further authorized to establish, and modify if necessary from time to time, a repayment plan and schedule.
Section 2. A new 2021 LTGO Taxable Bond Fund (36820) is created in the City Treasury, into which the principal proceeds and any premium received from the sale and delivery of limited tax general obligation bonds in 2021 shall be deposited for the purpose of paying all or part of the costs of various elements of the City’s capital improvement program and other City purposes approved by ordinance. The Fund shall receive earnings on its positive balances and pay interest on its negative balances. The Director of Finance is authorized to create other Accounts or Subaccounts as may be needed. References in Sections 4 and 5 of Ordinance 126161 to the 2021 LTGO Taxable Bond Fund refer to the fund created by this section rather than the fund renamed by Section 1 of this ordinance.
Section 3: Appropriations in the 2021 Adopted budget are modified as follows:
|
Item |
Department |
Fund |
Budget Summary Level/ BCL Code |
Amount |
|
3.1 |
Department of Finance and Administrative Services |
West Seattle Bridge Repair LTGO Bond Fund (36810) |
Debt Issuance Cost - LTGO (BO-FA-DEBTISS-L) |
($397,800) |
|
|
|
2021 LTGO Taxable Bond Fund (36820) |
Debt Issuance Cost - LTGO (BO-FA-DEBTISS-L) |
$397,800 |
|
Total |
$0 |
Section 4. Appropriations in the 2021 Adopted Budget and project allocations in the 2021-2026 Adopted Capital Improvement Program for the following items are adjusted as follows:
|
Item |
Dept |
Fund |
Budget Summary Level/BCL Code |
Additional Budget Appropriation |
CIP Project Name |
|
4.1 |
Seattle Department of Transportation |
West Seattle Bridge Repair LTGO Bond Fund (36810) |
Central Waterfront (BC-TR-16000) |
($4,260,000) |
Overlook Walk and East West Connections Project (MC-TR-C073) |
|
4.2 |
Seattle Department of Transportation |
2021 LTGO Taxable Bond Fund (36820) |
Central Waterfront (BC-TR-16000) |
$4,260,000 |
Overlook Walk and East West Connections Project (MC-TR-C073) |
|
4.3 |
Seattle Parks and Recreation |
West Seattle Bridge Repair LTGO Bond Fund (36810) |
Building for the Future (BC-PR-20000) |
($9,000,000) |
Aquarium Expansion (MC-PR-21006) |
|
4.4 |
Seattle Parks and Recreation |
2021 LTGO Taxable Bond Fund (36820) |
Building for the Future (BC-PR-20000) |
$9,000,000 |
Aquarium Expansion (MC-PR-21006) |
|
Net Change |
$0 |
|
Section 5. Any act consistent with the authority of this ordinance taken after its passage and prior to its effective date is ratified and confirmed.
Section 6. This ordinance shall take effect and be in force 30 days after its approval by the Mayor, but if not approved and returned by the Mayor within ten days after presentation, it shall take effect as provided by Seattle Municipal Code Section 1.04.020.
Passed by the City Council the ________ day of _________________________, 2021, and signed by me in open session in authentication of its passage this _____ day of _________________________, 2021.
____________________________________
President ____________ of the City Council
Approved / returned unsigned / vetoed this ________ day of _________________, 2021.
____________________________________
Jenny A. Durkan, Mayor
Filed by me this ________ day of _________________________, 2021.
____________________________________
Monica Martinez Simmons, City Clerk
(Seal)