HomeMy WebLinkAbout04-224DATE SUBMITTED: 11/3/04 BILL
AGENDA BILL
CITY OF BREMERTON
CITY COUNCIL
SUBJECTPExtension of interfund loan Committee Meeting Date: 11/10/04
from the Equipment Rental & Reserve Fund COUNC1L MEETING Date: 11/17/04
(510) to the Wastewater Fund (451) Deparanent: PW&U
previously authorized by Resolution #2918 Presenter: Phil Williams
Phone: 473-5755
SUMMARY: On 1/7/04, City Council authorized the Director of Financial Services to issue a loan
from the ER&R Fund (510) to the Wastewater Fund (451) in an amount not to exceed $1,500,000.
$700,000 was loaned in January 2004 and $400,000 in February and October to cover cash flow needs
in the Wastewater Fund.
A long-term (8-year) financial analysis was completed by an outside consultant (EES) in August and
rate recommendations were forwarded to & passed by City Council. These rate adjustments were
designed to bring the utilities to a stable financial condition over a 3 year period. The Wastewater
Utility may need the ability to borrow money until the full package of rate adjustments are in place in
2007 and the last payment is made on the 1994 Revenue bonds for the Wastewater Treatment Facility
in September 2007 ($2,728,000).
This resolution authorizes the Director of Financial Services to extend the cunx~t terms of the
existing loan to include a cap of $2,500,000 and a due date of December 31, 2005 at the existing
interest rate of 2.5% per annum. An extention of this loan beyond 12/31/05 would require separate
approval by City Council.
ATTACHMENTS: Resolution #
FISCAL IMPACTS (Include Budgeted Amount): On the current balance of $1.5 MM an interest
payment of approx $30,000 will be made in early 2005 (2004 13th period) on the existing loan
balance. For 2005, interest on all outstanding balances will accrue at 2.5% per annum.
APPROVALS: /'~'--~/ ·
DEPARTMENT DIRECTOR: (~_~,J'/~~
CITY ATTORNEY:'
FINANCE DIRECTOR: ~- ~ ,,~,/~,~---
FISCAL/BUDGET: CONSENT AGENDA []
OPERATIONS:
COUNCIL PRESIDENT: ~ J)~,~,~
0 .
RECOMMENDED MOTION: I move to approve Resolution No. ~.qt~5' authorizing the Director
of Financial Services to extend the existing interfund loan from the ER&R Fund to the Wastewater
utility in an amount not to exceed $2.5 million and a due date of 12/31/05.
COUNCIL ACTION: ~Approve [] Deny [] Table [] Continue [] No Action