CITY OF SEATTLE
ORDINANCE __________________
COUNCIL BILL __________________
title
AN ORDINANCE relating to the Haller Lake Improvements project in the Department of Finance and Administrative Services; establishing the 2017 Multipurpose LTGO Bond Fund; authorizing the loan of funds from the City’s Consolidated (Residual) Cash Pool, or its participating funds, in the amount of $1,500,000, to the 2017 Multipurpose LTGO Bond Fund for bridge financing of the Haller Lake Improvements project; and ratifying and confirming certain prior acts; all by a 3/4 vote of the City Council.
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WHEREAS, as part of the 2015-2020 Adopted Capital Improvement Program, the Executive proposed and the Council adopted the Haller Lake Improvements Project, to complete the design of Haller Lake Improvements Project at the City’s Haller Lake complex; and
WHEREAS, the 2016-2021 Proposed Capital Improvement Program includes funding to complete construction of those improvements; and
WHEREAS, the Haller Lake Improvements Project is estimated to cost $5,500,000 and is funded by proceeds from multiple fund sources through 2017, including Real Estate Excise Tax I and general obligation bonds; and
WHEREAS, the Executive intends to seek Council approval to issue LTGO bonds in 2017 to fund the Haller Lake Improvements project; and
WHEREAS, the Department of Finance and Administrative Services requires bridge financing for the Haller Lake Improvements project in advance of the 2017 LTGO bond issuance; and
WHEREAS, Seattle Municipal Code subsection 5.06.030.C requires City Council approval by ordinance of any interfund loan for a duration of more than 90 days; and
WHEREAS, in the normal course of business the City may temporarily lend cash between funds to maintain required balances; and
WHEREAS, there is sufficient cash in the City's Consolidated (Residual) Cash Pool or its participating funds to support a revolving loan of up to $1,500,000 through the end of 2017; and
WHEREAS, funds loaned by the City's Consolidated (Residual) Cash Pool to the 2017 Multipurpose LTGO Bond Fund for the purpose of bridge financing of the Haller Lake Improvements project are anticipated to be repaid from the proceeds of the sale of LTGO bonds in 2017; NOW, THEREFORE,
BE IT ORDAINED BY THE CITY OF SEATTLE AS FOLLOWS:
Section 1. The Director of Finance is authorized to create in the City Treasury the 2017 Multipurpose LTGO Bond Fund, into which the principal proceeds and any premium received from the sale and delivery of limited tax general obligation (LTGO) bonds in 2017 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 subfunds, accounts, or subaccounts as may be needed.
Section 2. The Director of Finance is authorized to make a revolving loan of up to $1,500,000 principal and interest outstanding at any one time from the City's Consolidated (Residual) Cash Pool or its participating funds to the 2017 Multipurpose LTGO Bond Fund, to provide bridge financing for the Haller Lake Improvements project being undertaken by the Department of Finance and Administrative Services (FAS). The loan is to be repaid no later than December 31, 2017, with interest on the loan at the rate of return of the City's Consolidated (Residual) Cash Pool. The entire principal and interest amount of the loan drawn in advance of the LTGO bond issuance in 2017 shall be repaid with proceeds from the sale of 2017 LTGO bonds, subject to future authorization by ordinance of the 2017 LTGO bonds.
Section 3. The Director of Finance may effectuate the loan authorized in Section 2 by transferring cash from one or more funds participating in the City's Consolidated (Residual) Cash Pool to the 2017 Multipurpose LTGO Bond Fund, or by carrying the 2017 Multipurpose LTGO Bond Fund in a negative cash position in an amount not to exceed $1,500,000 until no later than December 31, 2017. The Director of Finance is further authorized to establish, and modify if necessary from time to time, a repayment plan and schedule.
Section 4. Any act consistent with the authority of this ordinance taken after its passage and prior to its effective date is ratified and confirmed.
Section 5. 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 10 days after presentation, it shall take effect as provided by Seattle Municipal Code Section 1.04.020.
Passed by a 3/4 vote of all the members of the City Council the ____ day of ________________________, 2015, and signed by me in open session in authentication of its passage this _____ day of ___________________, 2015.
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President __________of the City Council
Approved by me this ____ day of _____________________, 2015.
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Edward B. Murray, Mayor
Filed by me this ____ day of __________________________, 2015.
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Monica Martinez Simmons, City Clerk
(Seal)