HomeMy WebLinkAbout2015-195-resolutionKITTITAS 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
4. The loan status should be reviewed annually by the legislative body at any open public
meeting.
5. The term of the loan may continue over a period of more than one year, but must be
"temporary" in the sense that no permanent diversion of the lending fund results from the
failure to repay by the borrowing fund. A loan that continues longer than three years will be
scrutinized for a permanent diversion of moneys.
WHEREAS: the County looked at obtaining financing for the expended funds, however the
rate of interest was estimated at 10%. The Board of County Commissioners, after meeting with the
County Treasurer, County Auditor and the Budget and Finance Manager concluded the best
financial decision for the county would be to finance the project in house.
WHEREAS: there are two separate purposes to the expenditures described above, the
Board of County Commissioners is authorizing the loans into two separate interfund loans.
Trust Water Right Building Construction
(separate Resolution)
55,625.00 725,945.00
1,441,027.00 _ 800,000.00
$1,496,652.00 $1,525, 45.00
WHEREAS, the energy grant project was completed in 2015, and the project was to be
financed over a fifteen year (15) period and the energy savings were projected to cover the financing
principal and interest.
NOW, THEREFORE BE IT RESOLVED; that the Board of County Commissioners, after due
consideration, does hereby authorize and direct the County Treasurer to loan the General Fund
$1,525,945 at 3.0% (03 percent) interest per annum, from fund 401 Solid Waste; with
reimbursement to be made using the attached amortization schedule.
AND, THEREFORE BE IT FUTHER RESOLVED, the loan will be reviewed by the finance
committee each October to do a fund analysis on both funds, to determine the stability of each fund,
allowing for early payoff or re -financing with another fund. The interest rate will be reviewed every 5
years as stated in the investment policy.
APPROVED the 29th day of December 2015.
BOARD OF COUNTY COMMISSIONERS
K1TT1T S Co' NTY, WASHINGTON
���• �? . Gary Ber dt, Chairman
ABSENT
`�-+, = e Chairman
' laV:ic
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rk Of the' Oard
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Interfund Loan 12/22/2015 9:37 AM Page 1
Compound Period: Annual
Nominal Annual Rate: 3.000%
CASH FLOW DATA
Event
Date
Amount
Number Period End Date
1 Loan
12/29/2015
1,525,945.00
1
2 Payment
5/1/2016
175,447.07
10 Annual 5/1/2025
AMORTIZATION SCHEDULE - Normal Amortization
175,447.07
15,552.10
Date
Payment
Interest
Principal Balance
Loan 12/29/2015
1,525,945.00
2015 Totals
0.00
0.00
0.00
1
5/1/2016
175,447.07
15,552.10
159,894.97
1,366,050.03
2016 Totals
175,447.07
15,552.10
159,894.97
2
5/1/2017
175,447.07
40,981.50
134,465.57
1,231,584.46
2017 Totals
175,447.07
40,981.50
134,465.57
3
5/1/2018
175,447.07
36,947.53
138,499.54
1,093,084.92
2018 Totals
175,447.07
36,947.53
138,499.54
4
5/1/2019
175,447.07
32,792.55
142,654.52
950,430.40
2019 Totals
175,447.07
32,792.55
142,654.52
5
5/1/2020
175,447.07
28,512.91
146,934.16
803,496.24
2020 Totals
175,447.07
28,512.91
146,934.16
6
5/1/2021
175,447.07
24,104.89
151,342.18
652,154.06
2021 Totals
175,447.07
24,104.89
151,342.18
7
5/1/2022
175,447.07
19,564.62
155,882.45
496,271.61
2022 Totals
175,447.07
19,564.62
155,882.45
8
5/1/2023
175,447.07
14,888.15
160,558.92
335,712.69
2023 Totals
175,447.07
14,888.15
160,558.92
9
5/1/2024
175,447.07
10,071.38
165,375.69
170,337.00
2024 Totals
175,447.07
10,071.38
165,375.69
10
5/1/2025
175,447.07
5,110.07
170,337.00
0.00
2025 Totals
175,447.07
5,110.07
170,337.00
Grand Totals
1,754,470.70
228,525.70 1,525,945.00
Last interest amount decreased by 0.04 due to rounding.
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