HomeMy WebLinkAbout07-295
DATE SUBMITTED: November 30, 2007
BILL #
07-2'15
AGENDA BILL
CITY OF BREMERTON
CITY COUNCIL
........................................................................................
SUBJECT: Authorization of a 1 month
Interfund Loan from the General
Government Capital Improvement Fund to
the Harborside Plaza & Commons Fund
Committee Meeting Date: December 12,2007
COUNCIL MEETING Date: December 19, 2007
Department: Financial Services
Presenter: Laura Lyon
Phone: 473-5722
SUMMARY: The Harborside Plaza and Commons capital improvement fund has a total project budget of
$5.5 million with $0.75 million authorized for 2007 and $4.75 million in the 2008 budget. Funding sources
include $5.0 million in grant funds which are immediately available as permitted by the terms ofthe grant and
$500,000 of City Real Estate Excise Tax (REET) from the General Government Capital Improvement Fund
which will not become available to the project until 2008 when the 2008 budget becomes effective. Expenses
that are eligible for grant reimbursement require submittal of claims after the expenditures have been incurred.
This creates demands for cash payments with a significant delay in reimbursement revenues. In addition, not
all administrative expenditures are eligible for grant reimbursement. For these reasons the City included in the
2008 budget $500,000 ofREET funds to cover cash flow requirements and expenditures that are not
reimbursable under the terms and conditions of the grant funding. However, activity is authorized and
underway in 2007 and the Harborside Plaza and Commons will be in a negative cash position at the end of
December 2007 (due to timing delays in expense reimbursements and administrative costs that are not grant
reimbursement eligible) unless action is taken to provide immediately available funds. It is the
recommendation of the Director of Financial Services that the City Council authorize a 1 month duration
(temporary) interfund loan between the General Government Capital Improvement Fund (REET funds) and the
Harborside Plaza & Commons Fund in an amount not to exceed $150,000 so that 2008 authorized REET funds
may be transferred in advance of January 1, 2008 to cover immediate cash flow requirements occurring in
2007.
A TT ACHMENTS:
FISCAL IMPACTS (Include Budgeted Amount): Funds are currently available in the General Capital
Improvement Fund to cover the interfund loan and $500,000 has been designated and authorized to be
transferred from this fund to the Harborside Plaza & Commons as part of the 2008 budget so this does not
change that expectation but accelerates the availability of the cash into 2007 as needed to cover current cash
flow deficiencies.
APPROVALS:
DEP ARTMENT DIRECTO
CITY ATTORNEY:
FINANCE DIRECTOR:
MAYOR:
CONSENT AGENDA ~
GENERAL BUSINESS D
PUBLIC HEARING D
COMMITTEE CHAIR
COUNCIL PRESIDENT:
RECOMMENDED MOTION: Move to approve and authorize a temporary 1 month interfund loan
from the General Government Capital Improvement Fund to the Harborside Plaza & Commons Fund
in an amount not to exceed $150,000 to cover immediate cash flow requirements.
COUNCIL ACTION: ~APprove D Deny D Table
D Continue D No Action