ORD 95-57 TRANSFER OF EXCESS BALANCES IN LID FUNDORDINANCE No. 95 - 57
AN ORDINANCE OF THE CITY OF BAINBRIDGE ISLAND,
WASHINGTON, AUTHORIZING THE TRANSFER OF
EXCESS BALANCES IN THE CITY'S LOCAL IMPROVEMENT
GUARANTY FUND TO THE CURRENT EXPENSE FUND.
WHEREAS, Washington statute RCW 35.54.095(1 ) and the bond market
require that the City keep a minimum of ten percent of the City's net outstanding L.I.D.
obligations in its L.I.D. guaranty fund; and
WHEREAS, Section 148 of the Internal Revenue Code requires that the City
keep no more than ten percent of such obligations in its guaranty fund or face
arbitrage penalties (yield restriction); and
WHEREAS, the City presently has $75,624.72 in its L.I.D. Guaranty Fund
while 10.0 % of its net outstanding obligations totals only $44,104.30, thus producing
an excess of $31,520.42; now, therefore
THE CITY COUNCIL OF THE CiTY OF BAINBRIDGE ISLAND, WASHINGTON,
DO ORDAIN AS FOLLOWS:
SECTION 1. The City Council has determined that the City of Bainbridge Island
has an amount in its local improvement guaranty fund in excess of the amount needed
to pay the outstanding obligations of that fund and all other obligations of this fund
which may be reasonably expected to occur in the near future.
SECTION 2. The City's Finance Director is directed to transfer $31,520.42 from the
City's L.I.D. Guaranty Fund to its Current Expense fund, which transfer shall leave an
amount in the L.I.D. Guaranty Fund which is 10.0 % of the net outstanding obligations
of the fund prior to the issuance of the City's Local Improvement District No. 13 Bonds.
Issuance of the City's Local Improvement District No. 13 Bonds shall fund an addition
to the City's L.I.D. Guaranty Fund equal to 10.0 % of the obligations created by
issuing these bonds.
SECTION 3. This Ordinance shall take effect and be in force five days after its
passage, approval, publication as required by law.
PASSED by the City Council this 21 st day of December, 1995.
APPROVED by the Mayor this 21 st day of December, 1995.
ATTEST/AUTH ENTI GATE:
JANEYK. JL"ST, Mayor
S~SP(~R~k
APPROVED AS TO FORM:
ROD P. KASEGUMA, City Attorney
FILED WITH THE CITY CLERK:
PASSED BY THE CITY COUNCIL:
PUBLISHED:
POSTED:
EFFECTIVE DATE:
ORDINANCE 95 - 57
December 14, 1995
December 21, 1995
December 23, 1995
December 23, 1995
December 28, 1995