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ORDINANCE NO. 1637
AN ORDINANCE providing for inter -fund borrowing by the
Sewer Fund.
WHEREAS, City is in process of constructing a sewer treat -
Iment plant and connecting pipelines at a cost of slightly in excess
of $2,000,000 of which sum some $965,000 will be paid by grants of
the Federal and State governments; and
WHEREAS, the interest rate on municipal bonds is at an all
time high so that it is not a good time to market bonds; and
WHEREAS, the City has substantial amounts invested in var-
ious separate funds which sums may be loaned to other municipal
funds of the City; and
WHEREAS, it is in the best interest of the City that a por-
tion of the cost of the treatment plant and connecting lines be
paid for by the Sewer Fund from loans from other municipal funds at
this time; and
WHEREAS, the estimated income of the Sewer Fund is $145,000
'annually; now, therefore,
BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF PORT
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(;ANGELES as follows:
Section 1. The Sewer Fund is hereby authorized and di-
Irected to borrow not in excess of the following amounts from the
following funds: Light Fund $750,000, Current Expense Fund
$250,000 and L.I.D. Guaranty Fund $100,000 in such amounts and at
such times as the City Manager deems advisable. Said funds are to
be used solely for the construction of the Sewer Treatment plant,
connecting lines and related construction.
Section 2. The Sewer Fund shall, within three years from
the date of the first loan, pay back all loans with interest there-
on at five and one -half per cent (51/2%) per annum. These repayments
are to be made from the income of the Sewer Fund and other available
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funds with the balance to be paid from the proceeds of a Sewer
Revenue Bond issue should this be necessary.
PASSED by. the City Council and approved by its Mayor at a
regular meeting of the Council held on the ,1/'day of _10.6"../.111,
1968.
Attest:
N645 J
City Clerk
Approved as to form:
//Y/de5K,/
City Attorney
PUJBLISHED:
MayoW
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