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KITTITAS COUNTY <br />DEPARTMENT OF PUBLIC WORKS <br />PUBLIC WORKS — BOARD OF COUNTY COMMISSIONERS <br />STUDY SESSION STAFF REPORT <br />STUDY SESSION DATE: July 27, 2020 <br />TOPIC: Public Facilities and Possible Early Payoff of Shady Brook Bond <br />ACTION REQUESTED: Direct Staff <br />LEAD STAFF: <br />Mark R. Cook <br />RECOMMENDATION: <br />Direct staff confer with the Auditor's Office on early bond payoff procedures. <br />BRIEFING SUMMARY: <br />• The Public Facilities has been making debt service payments on the Shady Brook <br />bond acquisition for the past several years. <br />• In 2021, the total bond value is estimated at being $1,119,000. <br />• Using the 2021 Distressed County funds (Fund 108) to pay off the remaining <br />bond value saves approximately $259,000 in Fund 108 future payments. <br />• Providing the Board elects to formally request consideration from the Council of <br />Governments (COG) for support, it may be prudent agreeing to make no county <br />fund 108 application in 2022. <br />BACKGROUND: <br />Resolution No. 2018-056 (EXHIBIT 1) obligates annual debt service payments towards <br />the Shady Brook property acquisition and subsequent bond. The distressed county fund <br />payment in 2021 is slated to be $121,877.20 including principal and interest. An interest <br />payment schedule is provided as EXHIBIT 2. <br />DISCUSSION: <br />Using the state's 2021 distressed county fund payment (and presumedly supplanting with <br />general fund) paying off remaining bond debt service saves approximately $259,000 in <br />future Fund 108 obligations. This is roughly the amount of COG recommended fund <br />reserve. The Board elected to use the reserve in 2020 providing support for Snoqualmie <br />Pass Utilities' District capital improvement proposal. This action was taken recognizing <br />the new water right for Kittitas County being generated as a result of wastewater <br />improvements at Snoqualmie Pass. It is getting late to solicit COG for likely grant <br />requests. It appears that the cities of Roslyn and Kittitas will likely not apply in 2021 but <br />remaining COG membership has not been solicited for likely requests. Consideration of <br />ongoing economic development staffing expense is recommended to the Board pending <br />any further discussions about 2021 Fund 108 allocations to Shady Brook, <br />Page I of 5 <br />PUBLIC WORKS BOARD OF COUNTY CONMHSSIONERS WORK SESSION STAFF REPORT <br />