HomeMy WebLinkAbout4197AN ORDINANCE of the City Council of the
City of Kent, Washington, approving internal
financing for the 72nd Avenue South Improvements
Project not to exceed $1,000,000 and, to be
repaid over an eight (8) year repayment schedule.
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 72nd Avenue South Improvements Project to come
from the following source and amount:
Sewerage Operating Fund: $1,000,000
The $1,000,000 internal loan will be internally financed over eight (8)
years and will include interest.
Repayment. The City and the City of Kent Regional Fire Authority
(RFA) have entered into an Interlocal Agreement (ILA) where the RFA will
rVolit to the City ten annual payments of not less than $120,000 beginning
in 2016. The payments from the RFA to the City are to be used to fund a
1 2016 Interna/ Financing
72"d Avenue South Project
portion of the cost of the 72"d Avenue South Improvements project as
outlined in the ILA. The total cost of the project is estimated to be
$3,760,000. The annual payments of $120,000 from the RFA will be
applied to pay down the outstanding internal debt. Annual debt payments
will be made by the Public Works Street Fund to the Sewerage fund as
summarized and set forth in Exhibit A, which is attached and incorporated
into this ordinance.
Financing Terms. Unless modified by the City Council, the term of
the internal financing shall not exceed eight (8) years and the annual
interest rate is to be the higher of 1.25% 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,
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.
2 2016 Internal Financing
72"d Avenue South Project
ONALD F OOZE", CITY CLERK
APPROVED AS TO FORM:
BRUBAKER, CITY ATTORNEY
PASSED: day of , 2016.
APPROVED: day of , 2016.
PUBLISHED: day of , 2016.
I hereby certify that this is a true copy of Ordinance Nop
passed by the City Council of the City of Kent, Washington, and approved
by the Mayor of the City of Kent as hereon indicated.
3 2016 Internal Financing
7Z"d Avenue South Project
;Beginning
Date Balance
12/31/2016 $1,000,000.00
12/31/20171 8921500.00
12/31/201& 783, 656.25
12/31/2019; 673,451.95
12/31/2020; 5611870.10
12/31/2021 448, 893.48
12/31/2022; 334,504.65
12/31/2023; 218,685.96
12/31/2024; 1011419.53
%Estimated/
Estimated/ ?Actual
Actual Interest Principal
Total
12,500.00 1071500.00
1.1,156.25 108, 843.75570 ....
81418.15 111, 581.85
71023038 112,976t62
51611.17 ` 1141388.83
4,181.31 ' 1151818t69
21733.57 1 1171266.43
11267.74: 1011419.53
62,687.27 1 1,000,000.00
Payment' New Balance
1201000.00 892,500.00
120,000.00 ; 783,656.25
120,000.00 673,451.95
120,000,00 '',, 561,870.10
1201000.00 ; 448,893.48
1201000.00 334,504.65
120,000.00 218,685.96
1201 000.00 101,419.53
1021687.27
1,062,687.27 __
The Kent Regional Fire Authority is to pay the City $120,000 per year for 10 years to fund their
portion of this project. These funds will be used to repay this loan.
The annual interest rate is to be the higher of 1.25% 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 2016 Internal Financing
72"d Avenue South Project