HomeMy WebLinkAbout05-297
AGENDA BILL
CITY OF BREMERTON
CITY COUNCIL
BILL #.!6 - Jr)
DATE SUBMITTED 12-07-2005
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SUBJECT ResolutIOn authonzmg the
extensIOn of an mterfund loan from the
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EqUIpment Rental Reserve Fund to the
Wastewater UtIlIty Fund
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CommIttee Meetmg Date
COUNCIL MEETING Date
Department
Presenter
Phone
12-14-05
12-21-05
FmancIa1 ServIces
Laura Lyon
473-5722
SUMMARY In November of2004, the CIty CouncIl approved an mcrease and extensIOn of an
mterfund loan to the Wastewater UtIlIty Fund from the EqUIpment Rental Reserve Fund by
ResolutIOn No 2945 The loan amount was not to exceed $25 mIllIon and the authonzatIOn expIres
on December 31, 2005 As of tills date, all of the $2 5 mIllIon has been transferred, and whIle
progress has been made to address the ongomg c,ilsh deficIencIes ofthe Wastewater UtIlIty It does not
have suffiCIent cash to proVIde full repaynlent of the outstandmg mterfund loan on December 31,
2005 It IS the opmIOn ofthe DIrector of FmancIal ServIces that repayment wIll reqUIre a penod of
three years to accomplIsh ThIS resolutIOn authonzes an extensIOn of the eXIstmg mterfund loan and
provIdes for repayillent by no later than December 31, 2008
ATTACHMENTS ResolutIOn, Debt ~ortIzatIOn Schedule and DISCUSSIOn Memo
FISCAL IMPACTS (Include Budgeted Amount) The Wastewater UtIlIty has msufficIent funds to
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repay thIS mterfund loan WIthout an extensIOn of tIme as proVIded for by thIS resolutIOn The 2006
budget proVIdes for pnncIp~l and mterest repayment on the mterfund loan m accordance WIth the
proposed debt amortIzatIOn schedule (attached)
APPROVALS
DEPARTMENT DIRECTOR
CITY ATTORNEY
FINANCE DIRECTOR
MAYOR
FISCAL/BUDGET
OPERATIONS
COUNCIL PRESIDENT
4J )~!?~
&~~ CONSENT AGENDA ~
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RECOMMENDED MOTION
Move to approve ResolutIOn No ~ q 94- authonzmg the DIrector of FmancIal ServIces to extend
the outstandmg mterfund loan from the ERR Fund to the Wastewater Fund m an amount not to exceed
$2:500,000, beanng mterest at a rate of 45% per annum and shall~be repaId no later than December
31,2008 ~
COUNCIL ACTION D Approve D Deny D Table
D Contmue D No ActIOn