HomeMy WebLinkAbout05-78
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RESOLUTION NO. 5-7 f
A RESOLUTION of the City Council of the City of Port
Angeles authorizing the temporary inter fund loan of
$350,000.00 from the Current Expense Fund to the
Water Construction Fund.
WHEREAS, there was money budgeted in the 1978 Budget for
tit the Construction of a Water Supply Source, and State Grant Sources
provided for other costs of construction; and
WHEREAS, progress payments have been made to the contrac-
tor, and no matching funds have been received from the various
grant agencies on this project; and
WHEREAS, the Water Construction Fund does not have
sufficient funds to pay its obligations for the remainder of the
project period; now, therefore,
BE IT RESOLVED, that a temporary interfund loan of
$350,000.00 from Current Expense Fund to the Water Construction
Fund is hereby authorized. The interfund loan is to carry an
interest rate of 6 3/4%, and is to be repaid from monies as they
are received from the State Grant Sources.
PASSED by the City Council of the City of Port Angeles
and approved by its Mayor at a regular meeting of the Council held
on the 7th day of
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February, 1978.
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Attest: :-
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City Clerk .
Published:
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MENO:
February 2, 1978
TO:
Ken IVhorton, Mayor Haguewood
and Council Members
Services Direc tor ~
Interfund Loan to Water Construction Fund
FROM:
Robert Orton, Administrative
RE:
Owing to some timing problems with various grant disbursement requests, Dave
Flodstrom has requested a temporary interfund loan to discharge contractor
payments until grant funds are released.
Dave has requested $350,000.00 and estimates it will take about one month to
receive grant reimbursement.
I recommend an interest rate of 6 3/4% which is slightly above the current yield on
most general fund investments.
If the full loan principal is used for 30 days, the interest expense would amount
to $1,943; or about $64.75 per day. (This is based on a 365 day year, at 6.75%)
A resolution is attached for Council action.
cc: Dave
Chet