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Record No: CB 120222    Version: 1 Council Bill No: CB 120222
Type: Ordinance (Ord) Status: Passed
Current Controlling Legislative Body City Clerk
On agenda: 11/22/2021
Ordinance No: Ord 126489
Title: AN ORDINANCE relating to the financing of the General Fund; amending Ordinance 126407 to increase the authorization of interfund loans up to a total amount of $275,000,000 from multiple City Funds to the General Fund as bridge financing to be repaid from future tax proceeds and other anticipated revenues; authorizing additional lending funds; and ratifying and confirming certain prior acts.
Sponsors: Teresa Mosqueda
Supporting documents: 1. Summary and Fiscal Note, 2. Signed Ordinance 126489, 3. Affidavit of Publication
CITY OF SEATTLE
ORDINANCE __________________
COUNCIL BILL __________________
title
AN ORDINANCE relating to the financing of the General Fund; amending Ordinance 126407 to increase the authorization of interfund loans up to a total amount of $275,000,000 from multiple City Funds to the General Fund as bridge financing to be repaid from future tax proceeds and other anticipated revenues; authorizing additional lending funds; and ratifying and confirming certain prior acts.
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WHEREAS, the 2021 Adopted Budget was balanced with $214 million of revenues from the new payroll expense tax adopted by Ordinance 126309; and
WHEREAS, Ordinance 126309 provided that in the first year the payroll expense tax obligations are not due until January 31, 2022, after which the payroll expense tax will be collected on a quarterly basis; and
WHEREAS, the extension of the due date for 2021 payroll expense tax payments until 2022 has resulted in a cash flow delay to the General Fund, with the expectation that the General Fund will be in an extended negative cash flow position necessitating the authorization of an interfund loan; and
WHEREAS, Ordinance 126407 authorized a revolving interfund loan of up to $205 million total principal and interest outstanding at one time from multiple City Funds to the General Fund as bridge financing to be repaid from future tax proceeds and other anticipated revenues; and
WHEREAS, since Ordinance 126407 took effect on September 11, 2021, the City Budget Office has confirmed that the completion date for the anticipated sale of surplus City property known as the Mercer Megablock, authorized by Ordinance 125916 and originally planned for late 2021, has been delayed until 2022, resulting in an additional cash deficit of approximately $66.5 million in property sale proceeds committed to the General Fund in 2021; 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...

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