HomeMy WebLinkAbout2921 RESOLUTION NO. ~ ~l
A RESOLUTION of the City of Bremerton, Washington,
authoiSzing an interfund loan to the General Fund from the
Contingency Reserve Fund.
WHEREAS, the fund balance for the General Fund (Fund 001) at the beginning of
Fiscal Year 2004 was approximately $763,000; and
WHEREAS, the General Fund has a history of cash flow deficiencies occurring
twice each year due to the collection cycles of property taxes and, as a result, the General Fund
has an immediate need for an inter-fund loan in order to meet cash flow needs; and
WHEREAS, the Contingency Reserve Fund (Fund 103) was established to
provide funding to support and protect the General Fund in the event of unforeseen and unfunded
emergency situations; and
WHEREAS, reserve cash in an amount sufficient to meet the General Fund's cash
flow needs is presently on hand within the Contingency Reserve Fund; NOW, THEREFORE,
THE CITY COUNCIL OF THE CITY OF BREMERTON, WASHINGTON,
DOES HEREBY RESOLVE AS FOLLOWS:
SECTION1. The City of Bremerton's Director of Finance is hereby authorized
and directed to make an interfund loan from the Contingency Reserve Fund (Fund 103) to the
General Fund (Fund 001) in the amount not to exceed $700,000 to meet the cash flow needs of
the General Fund. This loan shall bear no interest rate since the Contingency Reserve Fund was
created for the purpose of providing direct financial support and acts as a reserve for the General
Fund. This loan shall be repaid to the Contingency Reserve Fund from the General Fund on or
before December 31, 2004.
SECTION2. Severability. 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.
d ASSED by the City Council of the City of Bremerton, Washington, on this ,~fi~,Lday of
2004.
ARE~q NYGREN, Council President
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Interfund Loan
ER LUBOVICH} City At-tomey - _ v . ity Clerk
R:\LEGAL~Resolutions~Finance~inter-Fund Loan Res 2004 Cash flow.doc
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Interfun d Loan