HomeMy WebLinkAbout2945 RESOLUTION NO ~qt~
A RESOLUTION of the City Council of the City of Bmmerton,
Washington, authorizing interfimd loans to the Wastewater Utility
Fund from the Equipment Rental & Reserve Fund.
WHEREAS, the Wastewater Utility Fund (Fund 451) has a current cash shortfall;
and
WHEREAS, the Wastewater Utility Fund has a history of cash deficiencies and
the Wastewater Utility Fund currently does not have sufficient resources to provide cash flow
needs without interim funding support; and
WHEREAS, reserve cash in an amount sufficient to meet the Wastewater Utility
Fund's interim funding needs is presently on hand within the Equipment Rental & Reserve
(ER&R) Fund (Fund 510) to accommodate an interfund loan through the end of 2005;
WHEREAS, Pursuant to Resolution No. 2918, the City Council on January 27,
2004 authorized an interfund loan from the ER&R fund to the Wastewater Fund in an amount up
to $1.5 million dollars and that, to date, all of this $1.5 million dollars has been transferred; and
WHEREAS, a long term financial study of the utilities has now been completed
and a program of rate adjustments for the Wastewater Utility has been adopted by the City
Council, and
WHEREAS, the long range plan shows continuing deficits in cash flow for the
Wastewater Fund until the last payment is made on the 1994 Wastewater Revenue Bonds in
September 2007.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF BREMERTON,
WASHINGTON, DOES HEREBY RESOLVE AS FOLLOWS:
SECTION 1. The City of Bremerton's Director of Financial Services is hereby
authorized and directed to extend and increase the amount of available loan funds from the
ER&R Fund (Fund 510) to the Wastewater Utility Fund (Fund 451) as set forth in Resolution
No. 2918 from $1,500,000 to an amount not to exceed $2,500,000 to meet the cash flow needs of
the Wastewater Utility Fund. This loan shall bear interest at a rate of 2.5% per annum and shall
be repaid to the Equipment Rental and Reserve Fund from the Wastewater Utility Fund on or
before December 31, 2005.
SECTION 2. Severabilitv. If any one or more sections, subsections, or sentences
of this Resolution are held to be unconstitutional or invalid, such decision shall not affect the
validity of the remaining portion of this Resolution and the same shall remain in full force and
effect.
SECTION 3. Effective Date. This Resolution shall take effect and be in force
immediately upon its passage.
PASSED by the City Council of the City of Bremerton, Washington, on this/.Tz~Cday of
~-t.,e..~ ~ ~ 2004.
DAREN NYGREN, Coun~il'President
APPROVED AS TO FORM: ATTEST: /'~ ~ J ,,