CITY OF SEATTLE
ORDINANCE __________________
COUNCIL BILL __________________
title
AN ORDINANCE relating to the financing of fire facilities; creating a fund for depositing proceeds of Limited Tax General Obligation Bonds in 2021; authorizing the loan of funds in the amount of $8,200,000 from the Construction and Inspections Fund to the 2021 Multipurpose LTGO Bond Fund for bridge financing of the Fire Station 31 Replacement Project; amending Ordinance 126000, which adopted the 2020 Budget, including the 2020-2025 Capital Improvement Program, changing appropriations to various departments and budget control levels, and from various funds in the Budget; and ratifying and confirming certain prior acts; all by a 3/4 vote of the City Council.
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WHEREAS, The City of Seattle (“City”) has determined that Fire Station 31 in its current location at 1319 N. Northgate Way no longer meets the operational needs of the Seattle Fire Department (SFD); and
WHEREAS, the Northgate area is anticipated to continue rapid growth in both residential population and business activity in the next 20 years; and
WHEREAS, SFD and the Department of Finance and Administrative Services (FAS), through a site search, environmental due diligence, public outreach, and preliminary architectural designs, determined that this property is ideal for the new Fire Station 31; and
WHEREAS, the property owners are willing sellers and have agreed to sell the property according to purchase and sale agreements which were conditioned upon Mayor and City Council approval; and
WHEREAS, Ordinance 126000 authorized the 2020-2025 Adopted Capital Improvement Program, which provides for the establishment of a temporary station, and authorizes FAS to obtain options on real property for a new permanent station; and
WHEREAS, Seattle Municipal Code subsection 5.06.030.C requires City Council approval by ordinance of any interfund loan for a duration of 90 days or more; and
WHEREAS, in the normal course of business the City may temporarily lend cash between funds to maintain required balances; and
WHEREAS, the Director of Finance and the City Budget Director have determined that this interfund loan request is consistent with the Debt Management Policies adopted by Resolution 31553; and
WHEREAS, there is sufficient cash in the Construction and Inspections Fund to support an interfund loan of up to $8,200,000 through December 31, 2021 and still meet regular budgeted operating needs; and
WHEREAS, funds loaned by the Construction and Inspections Fund to the 2021 Multipurpose LTGO Bond Fund for the bridge financing of acquiring a site for and designing a new Fire Station 31 are anticipated to be repaid with proceeds from the sale of limited tax general obligation (LTGO) bonds issued in 2021; NOW, THEREFORE,
BE IT ORDAINED BY THE CITY OF SEATTLE AS FOLLOWS:
Section 1. The City Council finds and declares that:
A. Governor’s Proclamation 20-28 prohibits agencies from taking action (as defined in RCW 42.30.020), unless the matter is (1) necessary and routine; or (2) necessary to respond to the COVID-19 public health emergency.
B. This legislation is necessary because providing fire protection services, including building fire facilities, is a core City function for the preservation of public health and safety.
C. The City Council routinely reviews and approves budget actions, including adjusting or increasing appropriations, authorizing interfund loans, creating new funds, and adjusting or creating capital projects.
D. The City Council routinely reviews and approves funding mechanisms for building and maintaining fire facilities as planned in the Seattle Fire Department’s Fire Facilities Framework.
Section 2. A new 2021 Multipurpose LTGO Bond Fund 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.
Section 3. The Director of Finance is authorized to make a non-revolving loan of up to $8,200,000 principal and interest outstanding from the Construction and Inspection Fund to the 2021 Multipurpose LTGO Bond Fund, created by Section 2 of this ordinance, to provide bridge financing for the Fire Station 31 Replacement project that will be financed by authorized 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 sale of LTGO bonds issued in 2021.
Section 4. The Director of Finance may effectuate the loan authorized in Section 3 of this ordinance by transferring cash from the Construction and Inspections Fund to the 2021 Multipurpose LTGO Bond Fund or by carrying the 2021 Multipurpose LTGO Bond Fund in a negative cash position, in an amount not to exceed $8,200,000 until no later than December 31, 2021 or until repayment with proceeds from the sale of LTGO 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 5. The 2020-2025 Capital Improvement Program is amended by adding new project page “Fire Station 31 Replacement,” attached to this ordinance as Attachment A.
Section 6. In order to pay for necessary capital costs and expenses, but for which insufficient appropriations were made due to causes that could not reasonably have been foreseen at the time of the making of the 2020 Budget, the appropriation for the following item in the 2020 Budget is increased from the fund shown, as follows:
|
Item |
Fund |
Department |
Budget Summary Level |
Amount |
|
6.1 |
2021 Multipurpose LTGO Fund (36800) |
Finance and Administrative Services |
Fire Facilities (BC-FA-PSFACFIRE) |
$8,083,000 |
|
Total |
$8,083,000 |
Section 7. Any act consistent with the authority of this ordinance taken prior to its effective date is ratified and confirmed.
Section 8. 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 a 3/4 vote of all of the members of the City Council the ________ day of _________________________, 2020, and signed by me in open session in authentication of its passage this _____ day of _________________________, 2020.
____________________________________
President ____________ of the City Council
Approved by me this ________ day of _________________________, 2020.
____________________________________
Jenny A. Durkan, Mayor
Filed by me this ________ day of _________________________, 2020.
____________________________________
Monica Martinez Simmons, City Clerk
(Seal)
Attachments:
Attachment A - Fire Station 31 Replacement CIP Project Page