CITY OF SEATTLE
ORDINANCE __________________
COUNCIL BILL __________________
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AN ORDINANCE relating to the financing of the Human Capital Management System project; authorizing the loan of funds in the amount of $11,000,000 from the Finance and Administrative Services Fund to the 2025 Multipurpose LTGO Bond Fund for continuing the work of implementing the Human Capital Management System project; amending Ordinance 126955, which adopted the 2024 Budget, including the 2024-2029 Capital Improvement Program (CIP); changing appropriations to Finance and Administrative Services; and revising project allocations and spending plans for certain projects in the 2024-2029 CIP; and ratifying and confirming certain prior acts; all by a 3/4 vote of the City Council.
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WHEREAS, the Human Capital Management System (“HCMS”) project is a technology project that funds the planning, design, and replacement of the aging Human Resource Information System (“HRIS”), which includes the Citywide payroll and benefits system, with a new Human Capital Management (“HCM”) system also known as Workday; and
WHEREAS, the HCMS project was approved by the Enterprise Oversight Board (EOB) in February 2020 and will be managed by FAS Business Systems division in partnership with the Seattle Department of Human Resources (SDHR) and Seattle Department of Information Technology (ITD); and
WHEREAS, the HCMS project is financed by the proceeds of LTGO bonds issued in 2021, 2022, and 2023; and
WHEREAS, the first phase of the HCMS project is scheduled to go live in September 2024 and cash flow requirements for the project in 2024 exceed the estimates that were developed at the time of the 2024 Adopted Budget; and
WHEREAS, the Department of Finance and Administrative Services requires bridge financing for the HCMS project in advance of the 2025 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 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 Finance and Administrative Services Fund to support an interfund loan of up to $11,000,000 through December 31, 2026 and still meet regular budgeted operating needs; and
WHEREAS, funds loaned by the Finance and Administrative Services Fund to the 2025 Multipurpose LTGO Bond Fund for continuing the work of implementing the HCMS project are anticipated to be repaid from the 2025 LTGO bond issuance; NOW, THEREFORE,
BE IT ORDAINED BY THE CITY OF SEATTLE AS FOLLOWS:
Section 1. The Director of Finance is authorized to make a revolving loan of up to $11,000,000 principal and interest outstanding from the Finance and Administrative Services Fund to the 2025 Multipurpose LTGO Bond Fund to provide bridge financing for the HCMS 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, 2026, 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 tax-exempt LTGO bonds in 2025 and, if needed, in 2026.
Section 2. The Director of Finance may effectuate the loan authorized in Section 1 of this ordinance by transferring cash from the Finance and Administrative Services Fund to the 2025 Multipurpose LTGO Bond Fund, or by carrying the 2025 Multipurpose LTGO Bond Fund in a negative cash position, in an amount not to exceed $11,000,000 until no later than December 31, 2026. The Director of Finance is further authorized to establish, and modify if necessary, from time to time, a repayment plan and schedule.
Section 3. Appropriations in the 2024 Adopted Budget and project allocations in the 2024-2029 Adopted Capital Improvement Program (CIP) for the following items are increased as follows:
|
Item |
Dept. |
Fund |
Budget Summary Level/BCL Code |
CIP Project Name/ID |
CIP Project Appropriation Change |
|
3.1 |
Finance and Administrative Services |
2025 Multipurpose LTGO Bond Fund (37300) |
Information Technology (37300-BC-FA-A1IT) |
Human Capital Management System (MC-FA-HCMSYS |
$6,382,949 |
|
Net Change |
|
$6,382,949 |
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 as provided by Seattle Municipal Code Sections 1.04.020 and 1.04.070.
Passed by a 3/4 vote of all the members of the City Council the ________ day of _________________________, 2024, and signed by me in open session in authentication of its passage this ________ day of _________________________, 2024.
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President ____________ of the City Council
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Approved / |
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returned unsigned / |
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vetoed this _____ day of _________________, 2024. |
____________________________________
Bruce A. Harrell, Mayor
Filed by me this ________ day of _________________________, 2024.
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Scheereen Dedman, City Clerk
(Seal)