92-16 INTENT TO PROVIDE INTERIM FINANCING FOR LID NO. 13Page 60
RESOLUTION No. 92 -
A RESOLUTION OF THE CITY OF BAINBRIDGE ISLAND
DECLARING AN INTENT TO PROVIDE INTERIM FINANCING
FOR LOCAL IMPROVEMENT DISTRICT 13 (HIGH SCHOOL
ROAD - LID 13) FROM CITY FUNDS.
WHEREAS, on February 15, 1990, the City Council adopted
Ordinance 90-05 forming Local Improvement District 13 (High School Road); and
WHEREAS, the City's Current Expense Fund (Fund 001) and Utility
Fund (Fund 401) have or are projected to have surplus funds available for
investment, and the investment of those funds in an amount not to exceed
$1,500,000 for a period of not longer than 18 months will not cause these
funds to go into a deficit position; and
WHEREAS, interest rates available to the City on the open market
for the interim financing of LID 13 would cost the Local Improvement
District roughly 7.5 % per annum when the underwriting, administrative and
legal costs of financing are included; and
WHEREAS, current open market interest rates provide a yield to the City
on its investments of under 5.0 % now, therefore,
THE CITY COUNCIL OF THE CITY OF BAINBRIDGE ISLAND, WASHINGTON,
DOES RESOLVE AS FOLLOWS:
The Current Expense Fund (Fund 001) and Utility Fund of the City (Fund 401)
shall provide interim financing for LID 13 in an amount not exceeding
$1,500,000, at a rate of 6.0 % calculated on an actual/360 day basis, and for
a term of not longer than 18 months. These funds are to be repaid promptly
from permanent bond financing once the bond proceeds have been received
(which date is anticipated to be early in the first quarter of 1993).
ATTEST/AUTHENTICATE:
Ralph W. Eells, Finance Director
FILED WITH THE CITY CLERK: March 27, 1992
PASSED BY THE CITY COUNCIL: Apri] 2, ~ 992
RESOLUTION NUMBER: NO. 92-16