2006/02/01 Council Agenda Packet

EVERETT CITY COUNCIL AGENDA ITEM COVER SHEET 7 PROJECT TITLE: Adopt Resolution authorizing Consent COUNCIL BILL# electronic claims against X Action Originating Department Finance Transit Fund 425 for the month First Reading Contact Person Debra Bryant of December 1 through Second Reading Phone Number X8608 December 31, 2005 Third Reading • FOR AGENDA OF 2/1/06 Public Hearing Initialed by: Department Head _ L CAA Council President M. Location Preceding Action Attachments Department(s) Approval Budget Committee Resolution Administration 8/23/05 Finance Budget Amendment#2 31"d&Final Reading 9/14/05 Amount Budgeted 5,029,721.92 Expenditure Required 5,029,721.92 Account Number(s): Fund 425 Budget Remaining Additional Required DETAILED SUMMARY STATEMENT: In December of 2003,The City of Everett secured a note with the Bank of America to finance Everett Station construction costs not covered by grants or contributions from participating agencies. This note matured on December 31,2005. It was determined that it would be in the City's best interest to pay off the note at maturity and bring the debt in-house through an interfund loan from the General Fund. Advantages to the City include lower interest cost for Transit and greater flexibility to accelerate principal payments should sales tax collections exceed expectations. Using the additional sales tax proceeds authorized by voters in 2004,Transit made an initial principal payment of$1,299,750 and will pay the remaining$3,700,250 over the next three years. The General Fund will receive interest on the interfund loan equal the monthly investment portfolio yield. ELECTRONIC TRANSFER DETAILS DATE ITEM AMOUNT December 1, 2005 Interest $14,958.90 December 31, 2005 Principal $5,000,000.00 December 31, 2005 Interest $14,763.02 TOTAL $5,029,721.92 RECOMMENDATION (Exact action requested of Council): Adopt Resolution authorizing:electronic claims against Transit Fund 425 for the month of December 1 through December 31, 2005. 17