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RESOLUTION NO ~ 'f ~ 'f
A RESOLUTION of the CIty CouncIl of the CIty of
Bremerton, Washington, authorizing an Interfund Loan to the
Wastewater Fund from the Equipment Rental Reserve Fund
WHEREAS, pursuant to ResolutIOn No 2918, the CIty CouncIl on January,27,
2004 authonzed an mterfund loan from the EqUIpment Rental Reserve Fund (Fund 510) to the
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Wastewater Fund (Fund 451) m an amount up to $1 5 mIllIon, and
WHEREAS, on November 17, 2004 the CIty CouncIl authonzed an mcrease m
thIS mterfund loan to $2 5 mIllIon by ResolutIOn No ~2945 and to date, all of thIS $2 51llIllIon
dollars has been transferred, and
WHEREAS, the authonzatIOn for the mterfund loan per ResolutIOn No 2945
expIres on December 31, 2005, and ~,
WHEREAS the Wastewater UtIlIty Fund has a hIStOry of cash defiCIenCIes and
currently does not have suffiCIent resources to provIde full repayment of the mterfund loan
outstandmg on December 31,2005, and
WHEREAS, there IS suffiCIent cash m the EqUIpment Rental Reserve Fund to
extend the terms of repayment on thIS mterfund loan for' a penod of up to 3 years, and
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WHEREAS, a long term financIal study of the utIlItIes has been completed and a I
program of rate adjustments for the Wastewater UtIlIty'has been adopted by the CIty CouncIl,
and
WHEREAS, whIle sIgll1ficant'progr~ss has been made on addressmg the cash
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flow defiCIencIes of the Wastewater Fund, It IS the opmlOh of the DIrector ofFmancIal ServIces
that repayment of the current mterfund loan outstandmg WIll reqUIre a penod' of three years to
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accomplIsh, NOW, THEREFORE,
, I
THE CITY COUNCIL OF THE CITY OF BREMERTON, WASHINGTON,
DOES HEREBY RESOLVE AS FOLLOWS
SECTION 1 The Fmance Officer IS hereby authonzed and dIrected to extend
and contmue the mterfund loan from the EqUIpment Rental Reserve Fund to the Wastewater
Fund m an amount not to exceed $2,500:000 This loan sHall bear mterest at the rate of 4~ 5% per I
annum and shall be repaId not later than December 31, 2008
I SECTION 2 Severabzhty If anyone or more sectIOns, subsectIOns, or
sentences of thIS ResolutIOn are held to be unconstItutIOnal or mvalId, such declSlon shall not
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affect the valIdIty of the remammg portIOn of tills ResolutIOn and the same shall rerriam m fu!l
force and effect
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Wastewater Intelfund Loan
SECTION 3 E(fectzve Date ThIs ResolutIOn shall take effect and be m force
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ImmedIately upon ItS passage
PASSED by the CIty CouncIl ofthe CIty of Bremerton, Washmgton thIS~
day of ).fu..~ ,2005
J'
D RENNYGREN, Counc
APPROVED AS TO FORM
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R GER A LUBOVICH, CIt y
R \LEGAL\ResolutlOns\Fmance\ astewater mterfund loan doc
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Wastewater Interfund Loan