CITY OF SEATTLE
ORDINANCE __________________
COUNCIL BILL __________________
title
AN ORDINANCE relating to the North Precinct project in the Department of Finance and Administrative Services; amending Ordinance 124648, which adopted the 2015 Budget; authorizing the loan of funds from the City’s Consolidated (Residual) Cash Pool, or its participating funds, in the amount of $2,750,000, to the 2016 Bond Fund for bridge financing of the North Precinct project; establishing a budget control level in the 2016 Multipurpose LTGO Bond Fund; increasing 2015 appropriations of $1,500,000 in the 2016 Multipurpose LTGO Bond Fund; 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 2013-2018 Adopted Capital Improvement Program, the Executive proposed and the Council adopted the acquisition of a site and the design and construction of a new North Precinct for the Seattle Police Department at the southeast corner of the intersection between Aurora Ave North and N 130th Street. This multi-year project is estimated to cost $160 million and is funded by proceeds from multiple fund sources through 2019; and
WHEREAS, the Executive has endorsed the project scope to include the purchase of several parcels, tenant relocations, easement acquisition negotiations, and design and construction of a new North Precinct police station for the Seattle Police Department; and
WHEREAS, the Council provided authorization for debt financing through limited tax general obligation (LTGO) bonds in 2013 and 2014 for the North Precinct Project; and
WHEREAS, the Executive intends to seek Council approval to issue additional LTGO bonds in 2016, 2017, 2018, and 2019 to fund the completion of the project; and
WHEREAS, the Department of Finance and Administrative Services requires bridge financing for the project design phase in advance of the 2016 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 $2,750,000 through the end of 2016; and
WHEREAS, funds loaned by the City's Consolidated (Residual) Cash Pool to the 2016 Multipurpose LTGO Bond Fund for the purpose of bridge financing of the project is anticipated to be repaid from the proceeds of the sale of LTGO bonds in 2016; 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 $2,750,000 principal and interest outstanding at any one time from the City's Consolidated (Residual) Cash Pool or its participating funds to the 2016 Multipurpose LTGO Bond Fund, to provide bridge financing for the design and construction phase of the North Precinct project being undertaken by the Department of Finance and Administrative Services (FAS). The loan is to be repaid no later than December 31, 2016, 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 issuances in 2016 shall be repaid with proceeds from the sale of 2016 LTGO bonds, subject to future authorization by ordinance of the 2016 LTGO bond sale.
Section 2. The Director of Finance may effectuate the loan authorized in Section 1 by transferring cash from one or more funds participating in the City's Consolidated (Residual) Cash Pool to the 2016 Multipurpose LTGO Bond Fund, subject to it being established by future ordinance, or by carrying the 2016 Multipurpose LTGO Bond Fund in a negative cash position in an amount not to exceed $2,750,000 until no later than December 31, 2016. The Director of Finance is further authorized to establish, and modify if necessary from time to time, a repayment plan and schedule.
Section 3. The 2015 Adopted Budget is amended with the creation of the following new budget control level added to Attachment A of Ordinance 124648 as follows:
|
Item |
Fund |
Dept |
BCL Code |
BCL Name |
BCL Purpose |
2015 Appropriation |
|
3.1 |
2016 Multipurpose LTGO Bond Fund |
FAS |
36300-A1PS1 |
Public Safety Facilities - Police (36300-CIP) |
The purpose of the Public Safety Facilities - Police Budget Control Level (BCL) is to renovate, expand, replace, or build police facilities. This BCL funded by a 2016 bond issue (Fund 36300). |
$0 |
Section 4. In order to pay for necessary capital costs and expenses incurred or to be incurred, the appropriation for the following item in the 2015 Adopted Budget is increased from the fund shown as follows:
|
Item |
Fund |
Department |
Budget Control Level |
Amount |
|
4.1 |
2016 Multipurpose LTGO Bond Fund |
FAS |
A1PS1 Public Safety Facilities - Police (36300-A1PS1) |
$1,500,000 |
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 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.
_________________________________
President __________of the City Council
Approved by me this ____ day of _____________________, 2015.
_________________________________
Edward B. Murray, Mayor
Filed by me this ____ day of __________________________, 2015.
____________________________________
Monica Martinez Simmons, City Clerk
(Seal)