Res 1899 - Inter-Fund Loan Water and SewerCOUNCIL BILL NO. 2730
RESOLUTION NO. 1899
A RESOLUTION AUTHORIZING AN INTER -FUND LOAN FROM THE WATER
CONSTRUCTION FUND TO THE SEWER CONSTRUCTION FUND.
WHEREAS, the City Council desires to secure interim financing for construction
of capital sewer projects; and
WHEREAS, said financing is necessary to provide liquidity in the Sewer
Construction Fund and to fully fund the Debt Service Reserve for the Sewer
Construction Bonds; and
WHEREAS, a loan from the Water Construction Fund to the Sewer Construction
Fund will provide the necessary funds; and
WHEREAS, $232,000 was loaned from the Water Construction Fund to the
Sewer Construction Fund in February 2007, and this loan has expired; and
WHEREAS, $250,000 is budgeted for an additional loan from the Water
Construction Fund to the Sewer Construction Fund in Fiscal Year 2007-08; and
WHEREAS, the interim financing will be repaid from increased user rates
before the end of fiscal year 2010-11; and
WHEREAS, Oregon Revised Statute 294.460 authorizes inter -fund loans
provided that the loan is repaid in full within five years of the date on which the
loan is made, NOW THEREFORE,
THE CITY OF WOODBURN RESOLVES AS FOLLOWS:
Section 1. That an amount not to exceed $482,000 of Water Construction
Fund monies shall be loaned to the Sewer Construction Fund.
Section 2. That the City Council finds that the loan authorized by this
resolution is necessary to provide necessary liquidity to the Sewer Construction Fund
and to fully fund the Sewer Debt Service Reserve.
Section 3. That said loan shall bear interest at an annual rate of 3.50.
Section 4. That this loan shall expire on June 30, 2011.
Page 1 - COUNCIL BILL NO. 2730
RESOLUTION NO. 1899
Approved as to form:
17)'geoo e44 >
City Attorney
APPROV
Passed by the Council
Submitted to the Mayor
Approved by the Mayor
61 612a
J�'
Filed in the Office of the Recorder
ATTEST:
Mary Te ant, City Recorder
City of Woodburn, Oregon
Page 2 — COUNCIL BILL NO. 2730
:RESOLUTION N0. 1899
June 11, 2008
June 11, 2008
June 11, 2008