HomeMy WebLinkAbout11-25RESOLUTION NO ll- e5
A RESOLUTION of the City of Port Angeles authorizing
refinancing interfund loans from the Water Utility Fund to the
Solid Waste Fund.
WHEREAS, the City of Port Angeles maintains a Solid Waste Utility Fund,'charged
with maintaining sanitary conditions within the City limits; and
WHEREAS, pursuant to the terms of the interfund loans from the Water Utility Fund,
as lender, to the Solid Waste Utility Fund, as borrower the Solid Waste utility has paid the
Water utility per the approved interfund loan schedule.
WHEREAS, the equipment needs and costs of the City's transition to operating the
City's Transfer Station have been more than previously anticipated; and
WHEREAS, a compactor/bailer is needed to provide cost savings and efficiencies to the
Solid Waste utility; and
WHE,REAS, there are currently insufficient funds in the Solid Waste Utility Fund to
complete the purchase; and
WHEREAS, the City now desires to refinance the temporary loans previously approved
from the Water Utility Fund, as lender, to the Solid Waste Utility Fund, as borrower, for the
purpose of purchasing the compactor/bailer; and
WHEREAS, the Water Utility Fund has sufficient funds to refinance such a loan without
detriment to any function of such fund; and
WHEREAS, it is anticipated that amortizing the refinanced loan authorized herein over
a period substantially similar to the remaining terms of the existing interfund loans will allow
the City to repay the loan without detriment to the Solid Waste Utility revenues or additional
impact to customers; and
WHEREAS, the refinance of these interfund loans will not result in increased debt in
the Solid Waste utility or additional funds provided by the Water Utility Fund.
NOW, THEREFORE,
BE IT RESOLVED by the City Council of the City of Port Angeles as follows:
Section 1. The interfund loans from the Water Utility Fund, as lender, to the Solid
Waste Utility Fund, as borrower, approved through resolutions 06-22 and 04'24 are hereby
refinanced.
Section 2. The interfund loan amount will be $2,400'000.00'
l
Section J. The loan funds originated from the Water Utility Fund's excess unrestricted
operating ieserves and will not impact utility rates. These reserves are legally allowed to be
invested.
Section 4. The loan will carry an interest rate of 4.4400% per annum.
Section 5. It is anticipated that the borrowing fund will have sufficient revenues to be
able over the period of the loan to make the specified principal and interest payments, and the
loan is not a permanent diversion of funds.
Section 6. The loan will be amortized over a period of 8 years with yearly payments
occurring on the l't of March each year. This interfund loan includes the option for early
redemption. If this option is exercised payment of 100% of the amount to be redeemed should
occur on March I't of the year the City intends to finalize this debt. The amortization schedule
is attached to this Resolution as Exhibit A and incorporated into this Resolution by reference.
Section 7. The loan status will be reviewed annually by City Council at an open public
meeting.
City of Port Angeles at a regular meeting of said
2025.
Dexter, Mayor
A
Kari Martinez-Bailey, City
APPROVED AS TO FORM
PASSED by the Qity Council of the
Council held on tn" Aha^y of December,
Wj+lbrpE-Bloos, C ity Attorney
Shr,id* R. 5^h*^ 9
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2
Exhibit A /\tV NORTHWEST
MUl.llClPAL ADVISOnS
TABTE OF CONTENTS
City of Port Angeles, Washington
8 Year, 2 Years Interest Only
Report Page
Sources and Uses of Funds
Bond Summary Statistics
Bond Debt Service
L
2
3
Oct 5, 2025 6'.22 pm Prepared by Northwest Municipal Advisors (Finance 8.901 Port Angeles (City):2025-8Y)
lvv NORTHWEST
MUNICIPAL ADVISORS
SOURCES AND USES OF FUNDS
City of Port Angeles, Washington
8 Year, 2 Years lnterest Only
Dated Date
Delivery Date
0r/ot/2025
0t/ot/2026
Sources:
Bond Proceeds:
Par Amount 2,400,000.00
2,400,000.00
Uses:
Project Fund Deposits:
Project Fund 2,400,000.00
2,400,000.00
Oct6,2O25 6:22 pm Prepared by Northwest Municipal Advisors (Finance 8.901 Port Angeles (City):2025-8Y) Page 1
lW u3'nlilY'=^to'u''"..
BOND SUMMARY STATISTICS
City of Port Angeles, Washington
8 Year, 2 Years lnterest Only
Bond Component
Dated Date
Delivery Date
Last Maturity
Arbitrage Yield
True lnterest Cost (TlC)
Net lnterest Cost (NlC)
All-ln TIC
Average Coupon
Average Life (years)
Weighted Average Maturity (years)
Duration of lssue (years)
Par Amount
Bond Proceeds
Total lnterest
Net lnterest
Total Debt Service
Maximum Annual Debt Service
Average Annual Debt Service
Underwriter's Fees (per S1000)
Average Takedown
Other Fee
Tota I Underwriter's Discount
Bid Price
Par
Value
o7/ou2026
07/0112026
03/or/2033
4.394881%
4.39488r%
4.440000%
4.394881%
4.440000%
4.790
4.790
4.362
2,400,000.00
2,400,000.00
510,378.00
510,378.00
2,gLO,378.00
466,560.00
406,O99.26
100.000000
Price
Averate
Coupon
Average PVoflbp
changeLife
lnterfund Loan 2,400,000.00 100.000 4.440%4.790 999.55
2,400,000.00 4.790 999.55
Ttc
All-ln
Ttc
Arbitrage
Yield
Par Value
+ Accrued lnterest
+ Premium (Discount)
- Underwriter's Discount
- Cost of lssuance Expense
- Other Amounts
Target Value
Target Date
Yield
2,400,000.00 2,400,000.00 2,400,000.00
2,400,000.00
oL/0t/2026
4.394887%
2,400,000.00
0L/o!/2026
4.39488r%
2,400,000.00
or/o112026
4.39488r%
Oct 6, 2025 6:22 pm Prepared by Northwest Municipal Advisors (Finance 8.901 Port Angeles (City):2025-8Y) Page 2
lW U3.nlilYf^t"t"*o*.
BOND DEBT SERVICE
City of Port Angeles, Washington
8 Year, 2 Years lnterest Only
Period
Ending Principal Coupon lnterest
Debt
Service
Annual
Debt
Service
03lotl2026
t2/3112026
03/01/2027
12/3t/2027
03/orl2028
7213t12028
03/orl202s
12/3r/2029
03lorl2030
t2/3L/2O3O
03/oL/2031
t2/31/2O3t
03/or/2032
L2/37/2032
03lou2033
12/3t12033
360,000
375,000
390,000
405,000
425,OO0
445,000
4.440%
4.440%
4.440%
4.440%
4.440%
4.440%
r7,760
105,550
106,560
90,576
73,926
55,610
38,528
79,758
17,760
106,560
455,560
465,576
463,926
461,610
463,628
464,758
L7,760
105,550
466,550
465,576
463,926
461,670
463,628
464,758
2,400,000 510,378 2,910,378 2,910,378
AcI6,2O?S 6:22 pm Prepared by Northwest Municipal Advisors (Finance 8.901 Port Angeles (City):2025-8Y) Page 3