HomeMy WebLinkAbout091916_ra01Regular Agenda
JEFFERSON COUNTY
BOARD OF COUNTY COMMISSIONERS
CONSENT AGENDA REQUEST
TO: Jefferson County Board of Commissioners
THROUGH: Philip Morley, County Administrator
FROM: Stacie Prada, Treasurer 6, P
DATE: September 19, 2016 `�
SUBJECT: Interfund Loan from the Capital Improvement Fund to the County Road Fund
STATEMENT OF ISSUE: The Board of County Commissioners approved Resolution 24-16 on June 13, 2016
resolving to improve Undie Road, County Road No. 15009 and authorizing a funding plan through a combination of the
County Road Fund, PILT and internal borrowing. A portion of the funding plan includes internal borrowing from the
Capital Improvement Fund. Funds from the Capital Improvement Fund may be loaned to the County Road Fund with
Board approval.
ANALYSIS: This interfund loan provides an ability to fund the Undie Road project at a lower cost than obtaining a
bond given the reduced issuance fees and costs of a loan. It provides the county flexibility to consider other funding
or a county bond in the future based on interest rates and county needs. The loan provides increased interest revenue
to the fund and is appropriate given the duration of the loan.
FISCAL IMPACT:
The cost of the loan is less than a bond or other outside loan would be for the first ten years given current interest
rates. We can monitor interest rates and county budgetary needs to determine if county bonding is cost effective in
the future.
RECOMMENDATION:
Approve the attached resolution authorizing the County Treasurer to loan an amount of $650,000 from the County
Capital Improvement Fund to the County Road Fund per the terms identified in the resolution.
Morley, County
nistrator
Date
i2ll 14-6
STATE OF WASHINGTON
County of Jefferson
In the Matter of Providing a Loan to the }
County Road Fund (#180-000-010) from the } RESOLUTION NO.
Jefferson County Capital Improvement Fund }
(#302-000-010) to fund the Undie Road Project }
WHEREAS, the Board of County Commissioners approved Resolution 24-16 resolving to
improve Undie Road, County Road No. 15009 and authorizing a funding plan through a combination of
the County Road Fund, PILT and internal borrowing.
WHEREAS, after reviewing the fund balance of various County funds it has been determined
that the Capital Improvement Fund (302-000-010) has sufficient fund balance that a loan to the County
Road Fund (180-000-010) will not impair the function of that fund.
WHEREAS, The Capital Improvement Fund pays debt service and transfers monies to various
capital construction projects. The primary revenue is the 1/2 of 1% Real Estate Excise Tax.
WHEREAS, the State Auditor's Office has set out guidelines and minimum standards within the
Washington State Bars Manual, and Jefferson County has a debt policy authorizing the Board of County
Commissioners to approve interfund loans.
NOW THEREFORE BE IT RESOLVED, the Board of Commissioners, in the best interest of the
public, does hereby authorize the County Treasurer to loan an amount of $650,000 from the County
Capital Improvement Fund to the County Road Fund, at 2.5% per annum; that the interest shall be
deposited to the Capital Improvement Fund account 302-000-010; and that the said amount of the
loan shall be repaid on or before September 30, 2036.
APPROVED this _day of September 2016.
JEFFERSON COUNTY
BOARD OF COMMISSIONERS
SEAL:
Kathleen Kler, Madam Chair
Phil Johnson, Member
ATTEST:
David Sullivan, Member
Carolyn Avery
Deputy Clerk of the Board
Levelized Principal payment
INTERFUND LOAN FROM CAPITAL IMPROVEMENT FUND FOR UNDIE ROAD
Interest Rate 2.5%
Loan Amount 650,000.00
Payment Date
Loan Amount Due
Principal
Interest
Total Payment
Sep -17
650,000.00
32,500.00
16,250.00
48,750.00
Sep -18
617,500.00
32,500.00
15,437.50
47,937.50
Sep -19
585,000.00
32,500.00
14,625.00
47,125.00
Sep -20
552,500.00
32,500.00
13,812.50
46,312.50
Sep -21
520,000.00
32,500.00
13,000.00
45,500.00
Sep -22
487,500.00
32,500.00
12,187.50
44,687.50
Sep -23
455,000.00
32,500.00
11,375.00
43,875.00
Sep -24
422,500.00
32,500.00
10,562.50
43,062.50
Sep -25
390,000.00
32,500.00
9,750.00
42,250.00
Sep -26
357,500.00
32,500.00
8,937.50
41,437.50
Sep -27
325,000.00
32,500.00
8,125.00
40,625.00
Sep -28
292,500.00
32,500.00
7,312.50
39,812.50
Sep -29
260,000.00
32,500.00
6,500.00
39,000.00
Sep -30
227,500.00
32,500.00
5,687.50
38,187.50
Sep -31
195,000.00
32,500.00
4,875.00
37,375.00
Sep -32
162,500.00
32,500.00
4,062.50
36,562.50
Sep -33
130,000.00
32,500.00
3,250.00
35,750.00
Sep -34
97,500.00
32,500.00
2,437.50
34,937.50
Sep -35
65,000.00
32,500.00
1,625.00
34,125.00
Sep -36
32,500.00
32,500.00
812.50
33,312.50
650,000.00 154,375.00 771,875.00
G:\Treasurers\Interfund Loans\Undie Rd Loan