Ordinance 4380ORDINANCE NO. 4380
AN ORDINANCE OF THE CITY OF EDMONDS, WASHINGTON,
RELATING TO THE FINANCING OF THE GENERAL FUND;
AUTHORIZING INTERFUND LOANS UP TO A TOTAL
AMOUNT OF $6,000,000 FROM UTILITY FUNDS TO THE
GENERAL FUND AS BRIDGE FINANCING
WHEREAS, the City of Edmonds has determined that the General Fund requires temporary
financing to meet cash flow needs for operational requirements; and
WHEREAS, Edmonds Municipal Code subsection 3.22.010 the administrative services
director, or designee, is authorized to administer an interfund loan program and make interfund loans
as needed to keep the funds of the city solvent; and
WHEREAS, the Director of Finance and Mayor have determined that this interfund loan
request is consistent with the Financial Policies adopted by Resolution 1556; and
WHEREAS, the 2025-2026 Adopted Biennium Budget approved by Ordinance included a $6.0
million interfund loan to the General Fund from utility funds; and
WHEREAS, the adopted budget anticipated cash shortfalls in the General Fund at times during
the biennium, and the Director of Finance and Mayor have recommended that an interfund loan is the
most viable alternative available for maintaining consistent city services and operations; and
WHEREAS, there is sufficient cash in utility funds to support portions of the total loan to the
General Fund and still meet regular budgeted operating and immediate capital needs and utility reserve
requirements; and
WHEREAS, funds loaned to the General fund pursuant to this ordinance, along with the
applicable interest to be paid to the lending funds are anticipated to be repaid from future tax proceeds
and other anticipated revenues; and
WHEREAS, the interfund loan authorized by this ordinance is consistent with the guidelines
established by the Washington State Auditor's Office as described in the Washington State Bars
Manual; and
WHEREAS, the City desires to formalize the terms and conditions of this interfund loan to
ensure transparency, accountability, and compliance with the Washington State Auditor's Office
guidelines; and
NOW, THEREFORE,
THE CITY COUNCIL OF THE CITY OF EDMONDS, WASHINGTON, DO ORDAIN
AS FOLLOWS:
Section 1. The City Council hereby authorizes an interfund loan from utility funds to the
General Fund in an amount not to exceed $6,000,000 during the time period January 1, 2025 to
December 31, 2025, subject to the terms and conditions set forth in this ordinance. The loan shall bear
interest at a rate equal to the Local Government Investment Pool (LGIP) rate as of the date of a draw
on the loan.
1. Loan Details:
o Loan Amount: Up to $6,000,000 (drawn as needed by the General Fund).
o Interest Rate: Determined at the time of each draw.
o Year 1 (2025): No payments of principal or interest.
o Year 2 (2026): Monthly payments of principal and interest begin.
o Year 3 (2027): Loan repaid in full by 12/31 /2027.
2. Assumptions:
o An amount up to, not to exceed, $6 million will be drawn by the end of 2025.
o Simple interest will be calculated using actual rates at the time of a draw and will vary.
o Payments in 2026 and 2027 are calculated to amortize the loan completely by
12/31 /2027.
o The loan can be paid in full at any time.
3. Repayment Schedule:
o Year 1 (2025)
1. No payments are made
o Year 2 (2026)
1. Monthly payments of principal and interest begin in January
2. Payments will cover the simple accrued interest from Year 1 and principal
3. The annual payment amount for 2026 is calculated to be approximately 50% of
the total repayment amount.
o Year 3 (2027)
1. Monthly payments continue to ensure full repayment by December 31, 2027.
Section 2. The loan is intended to provide temporary cash flow support for the General Fund
to support operations.
Section 3. The City Finance Department shall maintain detailed records of all loan transactions,
including disbursements, payments, and interest calculations.
Section 4. The City Finance Department shall monitor compliance with the repayment
terms and report the loan status to the City Council as part of the monthly financial reporting
process as described in the Council's Financial Policies adopted by Resolution XXXXX.
Section 5. The Council has determined that this interfund loan complies with Washington
State Auditor's Offtce's guidance on interfund loans, including prohibition of borrowing from
restricted funds for unrelated purposes. The Council has further determined that we require the
utility funds retain sufficient reserves to meet operational and legal obligations throughout the
term of the loan.
Section 6. Severability. If any section, subsection, clause, sentence, or phrase of this
ordinance should be held invalid or unconstitutional, such decision shall not affect the validity of
the remaining portions of this ordinance.
Section 7. Effective Date. This ordinance, being an exercise of a power specifically
delegated to the City legislative body, is not subject to referendum and shall take effect five (5)
days after passage and publication of an approved summary thereof consisting of the title.
APPROVED:
MAYOR MIKE ROSEN
ATTEST/AUTHENTICATED:
S PASSEY, CIT LERK
APPROVED AS TO FORM:
OFFICE OF THE CITY ATTORNEY:
JEFF TARADAY, CNITY ATTORNEY
FILED WITH THE CITY CLERK: January 9, 2025
PASSED BY THE CITY COUNCIL: January 14, 2025
PUBLISHED: January 17, 2025
EFFECTIVE DATE: January 22, 2025
ORDINANCE NO. 4380
SUMMARY OF ORDINANCE NO.4380
of the City of Edmonds, Washington
On the 14th day of January, 2025, the City Council of the City of Edmonds, passed Ordinance
No. 4380. A summary of the content of said ordinance, consisting of the title, provides as
follows:
AN ORDINANCE OF THE CITY OF EDMONDS, WASHINGTON,
RELATING TO THE FINANCING OF THE GENERAL FUND;
AUTHORIZING INTERFUND LOANS UP TO A TOTAL AMOUNT OF
$6,000,000 FROM UTILITY FUNDS TO THE GENERAL FUND AS
BRIDGE FINANCING.
The full text of this Ordinance will be mailed upon request.
DATED thisl4th day of January, 2025.
C LERK, SCOTT PA Y
Everett Daily Herald
Affidavit of Publication
State of Washington }
County of Snohomish } ss
Michael Gates being first duly sworn, upon
oath deposes and says: that he/she is the legal
representative of the Everett Daily Herald a
daily newspaper. The said newspaper is a legal
newspaper by order of the superior court in the
county in which it is published and is now and
has been for more than six months prior to the
date of the first publication of the Notice
hereinafter referred to, published in the English
language continually as a daily newspaper in
Snohomish County, Washington and is and
always has been printed in whole or part in the
Everett Daily Herald and is of general
circulation in said County, and is a legal
newspaper, in accordance with the Chapter 99
of the Laws of 1921. as amended by Chapter
213, Laws of 1941, and approved as a legal
newspaper by order of the Superior Court of
Snohomish County, State of Washington, by
order dated June 16. 1941, and that the annexed
is a true copy of EDH1007864 ORDINANCE
SUMMARY as it was published in the regular
and entire issue of said paper and not as a
supplement form thereof for a period of 1
issue(s), such publication commencing on
01/17/2025 and ending on 01/17/2025 and that
said newspaper was regularly distributed to its
subscribers during all of said period.
The amount f the fee for Lch publication is
$55.04, e
Subscribed and sworn before me on this \\�.��....0
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day of J Go 10 202�t<f
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ASH 119
Notary Public in and for the State of
Washington.
City of Edmonds-LEGAL.ADS 114101416
SCOTF PASSEY
Classified Proof
ORDINANCE SUMMARY
01 Ute City of on ,Washing:on
On the "" Day of January. 202N. the City Council of the City of
Edmonds, passed the Wlfting Ordinances, the summary of sold
ordinances conslslvlg 0f 'Ues are provided as follows:
ORDINANCE NO a379
AN ORDINANCE CII O DS, WASHINGTON.
AMENDING CHAPTER 18.00 ECDC (PUBLIC WORKS
REQUIREMENTS; GENERAL REQUIREMENTS) TO UPDATE
REFERENCES TO THE APPRENTICE REQUIREMENTS OF
RCW 39.04 320 AND THE RESPONSIBLE BIDDER CRITERIA
REQUIREMENTS OF RCW 39.04.350; PROVIDING FOR
SEVERABILITY: ARNDN ETCING ANA EFFECTIVE DATE.
AN ORDINANCE OF CITY OF DMONDS. WASHINGTON.
RELATING TO THE FINANCING OF THE GENERAL FUND;
AUTHORIZING INTERFUND LOANS UP TO A TOTAL AMOUNT
OF S8,000.000 FROMS BRIDGE FUNDS
T NG E GENERAL FUND
ORDINANCE NO a381
AN ORDINANCE OFiaE�"iTt�OF EDMONDS. WASHINGTON.
AMENDING TANEDCPAY RANGES AL NGIND REPZED EALOYEE POSITIONS
ORDINANCE 4359.
ORDINANCE N - t382
AN ORDINANCE O I O-FEDMONOS, WASHINGTON,
ESTABLISHING INTERIM DEVELOPMENT STANDARDS FOR
THE NEIGHBORHOOD CENTERS AND
HUBS THATARE IDENTIFIED
IN H COhMPR oHENSIjarturrEEDAJED y PLAN.
CITY CLERK, SCOTT ASSEY
Published: January 17, 2025
Page: 2
Proofed by Pospical, Randie, 01/17/2025 07:41:47 am
