HomeMy WebLinkAbout4148AN ORDINANCE of the City Council of the
City of Kent, Washington, approving an internal
financing for the LED Lighting Replacement Project
not to exceed $2,245,000. The Council approves a
nine (9) year repayment schedule for $1,800,000
of the $2,245,000 total as long-term internal
financing.
THE CITY COUNCIL OF THE CITY OF KENT, WASHINGTON, DOES
HEREBY ORDAIN AS FOLLOWS:
ORDINANCE
SECTION 1,
Interna/ Financing. The City Council approves the internal funding
for the LED Lighting Replacement Project to come from the following
sources and amounts.
Sewerage Operating Fund: $1,000,000
Self -Insurance Fund: $800,000
General Fund (Strategic Investment): $445,000
Upon completion of the project, and expected within the current calendar
yearI the City will receive a rebate from Puget Sound Energy, anticipated
to be $445,000. The rebate will be applied to the General Fund portion of
1 2015 Interna/ Financing
LED Lighting Replacement Project
the financing. The remaining $1,800,000 will be internally financed over
nine (9) years and will include interest.
Repayment. The LED Lighting Replacement Project is projected to
save the General Fund at least $230,000 annually in electricity savings
after the conversion of the City owned street lights to LED lighting. This
annual savings will be applied to the repayment of these loans, plus
interest, over nine (9) years. The electric bills for street lighting are paid
from the General Fund. Annual debt payments will be made by the Public
Works General Fund to the Sewer and Insurance funds as summarized and
set forth in Exhibit A and Exhibit B, which are attached and incorporated
into this ordinance.
Financing Terms. Unless modified by the City Council, .the term of
the internal financing shall be not exceed nine (9) years and the annual
interest rate is to be the higher of 1.2% or the annualized interest rate
earned on the investments in the LGIP (Local Government, Investment
Pool). The interest rate will be reviewed at the end of each fiscal year and
the debt service recalculated if necessary.
SECTION 2, -Severability. If any one or more section, subsection,
or sentence of this ordinance is held to be unconstitutional or invalid, such
decision shall not affect the validity of the remaining portion of this
ordinance and that remaining portion shall maintain its full force and
effect.
SECTION 3. -Corrections by City Clerk or Code Reviser. Upon
approval of the City Attorney, the City Clerk and the code reviser are
authorized to make necessary corrections to this ordinance, including the
correction of clerical errors; ordinance, section, or subsection numbering;
2 2015 Interna/ Financing
LED Lighting Rep/acement Project
or references to other local, state or federal laws, codes, rules, or
regulations.
SECTION 4. -Effective Date. This ordinance shall take effect and
be in force five (5) days from and after its passage and -publication, as
provided by law. ,- ,t //
ATTEST:
RONALD F/fi100f��, CITY CLERK
APPROVED AS TO FORM:
T BRUBAKER, CITY ATTORNEY
PASSED: /'' day of �r� , 2015.
a
APPROVED: 47q`=qday of z 2015s
PUBLISHED: f day of ® , 2015.
I hereby certify that this is a true copy of Ordinance No.
passed by the City Council of the City of Kent, Washington, and approved
by the Mayor of the City of Kent as hereon indicated.
P:\Clvl!\Ordinance\LED Llghtln9 Project Internal Elnancing.docx
(SEAL)
3 2015 Interna/ Financing
LED Lighting Rep/acement Project
EXHIBIT A
Internal Note
Funding of LED Street Lighting Project
Interfund Note from Sewer Fund to General Fund
Repayment Schedule
Original Principal Amount $1,000,000.00
Interest Rate { 1.20%
Loan Years 9 !!.
Note Dated 3/31/2015;
Maturity 12/31/2024
Payments $127,777.78
Estimated/
Beginning iEstimatedl iActual
Date Balance ,Actual Interest 'Principal Total Payment!New Balance I
12/31/2016; $1,000,000.00! $ 12,000.00 $ 115,777.78 $ 127,777.78 $ 884,222.22
_. _
12/31/2017! 884,222.22 10,610.67 117,167.11 127,777.78. 767,055.11
12/31/2018, 767,055.11 (; 91204.66 1185573.12 127,777.78 648,481.99
12/31/2019' 648,481.99 7,781.78 119,996.00 127,777.78 528,485.99
12/31/2020; 528,485.99 61341.83 121,435.95 127,777.78 407,050.04
12/31/2021; 407,050.04 ! 41884.60 122,893.18 127,777.78 i 284,156.86
12/31/2022 284,156.86 i 31409.88 , 124,367.90 1 127,777.78 159,788.96
12/31/20231 159,78811 11 .96 1,917.47 125,860.31 127,777.78 33,928.65
1 11 1-12/31/2024; 33,928.65 ! 407.14 33,928.65 34,335.79 -
$ 56,558.03 $1,000,000.00 $11056,558.03
* Actual payment
Notes:
The street lighting electric bill are paid from the General Fund, so that is where the electric
savings will occur. Annual payments will be made by the Public Works General Fund to the Sewer
and Insurance Funds.
Per City Council action, the estimated $230,000 in annual electric savings on the street lighting
costs after the coversion of the City owned street lights to LED lighting will be applied to repay
these loans, plus interest, over nine (9) years.
2 The annual interest rate is to be the higher of 1.2% or the annualized interest rate earned on the
investments in the LGIP (State investment pool). The inteerest rate will be reveiwed at the end of
each fiscal year and the debt service recalculated if necessary.
4 2015 Internal Financing
LED Lighting Replacement Project
I EXHIBIT B
Internal Note
Funding of LED Street Lighting Project
Interfund Note from Insurance Fund to General Fund
Repayment Schedule
Original Principal Amount $ 800,000.00 ,
Interest Rate z 1.20%
Loan Years ; 9
Note Dated 3/31/2015
Maturity 12/31/2024{
Payments ! $102,222.22
'Estimated/
;Beginning Estimated/ Actual
Date Balance 'Actual Interest; Principal Total Payment New Balance
12/31/2016' $ 800,000.00 $ 91600.00 $ 92,622.22 $102,222.22 ; $ 707,377.78
12/31/2017; 707,377.78 8,488.53 93,733.69 102,222.22 , 613,644.09
12/31/2018 613,644.09 71363.73 94,858.49 1021222.22 518,785.60
12/31/2019; 518,785.60 ! 61225.43 95,996.79 102,222.22 422,788.81
12/31/2020! 422,788.81 51073.47 ; 971148.75 102,222.22 325,640.06
12/31/2021 325,640.06 31907.68 981314.54 102,222.22 227,325.52
12/31/2022 2275325.52 21727.91 99,494,31 i 1021222.22 127,831.21
12/31/2023; 127,831.21 ' 11533.97 100,688.25 102,222.22 27,142.96
12/31/2024I 27,142.96 325.72 27,142.96 27,468.68 0.00
$ 45,246.44 ; $ 800,000.00 $ 845,246.44 ,
* Actual payment
Notes.
The street lighting electric bill are paid from the General Fund, so that is where the electric
savings will occur. Annual payments will be made by the Public Works General Fund to the Sewer;',
and Insurance Funds.
Per City Council action, the estimated $230,000 in annual electric savings on the street lighting
Ilcosts after the coversion of the City owned street lights to LED lighting will be applied to repay
these loans, plus interest, over nine (9) years.
2 The annual interest rate is to be the higher of 1.2% or the annualized interest rate earned on the
investments in the LGIP (State investment pool). The inteerest rate will be reveiwed at the end of
each fiscal year and the debt service recalculated if necessary.
5 2015 Interna/ Financing
LED Lighting Replacement Project