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KITTITAS COUNTY BOARD OF COUNTY COMMISSIONERS RESOLUTION NO.JOff- Iq-6 A Loan in the amount of $1,525,945 to fund 001 General Fund From the 401 Solid Waste Fund WHEREAS: On July 2, 2013, the Board of County Commissioners signed an agreement with Washington State Department of Commerce for the Energy Efficiency Grant for the amount of $330,384 and the total project of $1,321,618. The Board of County Commissioners signed a Notice of Intent to finance this project in the amount of $850,000. As of this date, the amount of the project spent is $725,945, and the project is still not completed. WHEREAS: on August 6, 2013, the Board of County Commissioners awarded the Armory Renovation Project to Belsaas and Smith, in the amount of $1,369,000. This was to complete the project that had not been completed by a previous contractor. The total costs above the bond were $800,000. WHEREAS: On May 29, 2014, the Board of County Commissioners conducted a public hearing to purchase for trust water rights. The agreements were signed and the payments made in 2014 for the trust water rights were $1,055,625. WHEREAS: on December 30, 2014 the Board of County Commissioners approved Resolution 2014-184 authorizing a loan in the amount of $2,581,570 from Equipment Rental & Revolving Fund to the General Fund. WHEREAS: on January 8, 2015, the General Fund made an additional purchase of the trust water rights that were approved on May 29, 2014 in the amount of $1,441,027.08. WHEREAS: on June 1, 2015, the General Fund made a payment to ERR in the amount of $1,000,000 plus $6,453.93 interest. And on December 29, 2015 the balance of the loan authorized by Resolution 2014-184 will be paid. WHEREAS; the General Fund has processed payments for the above projects and the County's Finance Committee intends to obtain financing forthese projects to reimburse the County's General Fund. WHEREAS: According to the Budgeting, Accounting and Reporting Systems Manual, Chapter 3.9.1 states: 1. The legislative body of a municipality must, by ordinance or resolution, approve all Interfund loans, indicating the lending and borrowing funds, and provide in the authorization a planned schedule of repayment of the loan principal as well as setting a reasonable rate of interest (based on the external rate available to the municipality) to be paid to the lending fund. The planned schedule of repayment should specify the due date(s) of payment(s) needed to repay the principal and interest on the loan. 2. Interest should be charged in a// cases, unless: a. The borrowing fund has no other source of revenue other than the lending fund; or b. The borrowing fund is normally funded by the lending fund. 3. The borrowing fund must anticipate sufficient revenues to be able over the period of the loan to make the specified principal and interest payments as required in the authorizing ordinance or resolution. 1