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RESOLUTION NO. 2015 - 13 A RESOLUTION OF THE CITY OF MOSCOW, IDAHO, A MUNICIPAL CORPORATION OF THE STATE OF IDAHO, TO AUTHORIZE CITY FINANCE DIRECTOR TO MAKE INTER FUND INVESTMENTS PURSUANT TO IDAHO CODE AND CITY INVESTMENT POLICY FOR THE PURPOSE OF MEETING CITY'S OBLIGATIONS IN FEDERAL GRANT MATCHING REQUIREMENTS FOR THE PULLMAN MOSCOW AIRPORT REALIGNMENT PROJECT; PROVIDING THAT THIS RESOLUTION SHALL BE IN EFFECT UPON ITS PAS SAGE, AND APPROVAL. WHEREAS, the City of Moscow and the City of Pullman are co-sponsors of the Moscow/Pullman Airport grant award for the Realignment Project; and WHEREAS, the City of Moscow has accepted the role as financing partner with the City of Pullman for the Airport Realignment (hereinafter "Project"); and WHEREAS, City has established a financing role in the Moscow/Pullman Airport in an amount not to exceed two million five hundred thousand dollars ($2,500,000); and WHEREAS, City began the financing plan in August, 2014 after City Council adopted the 2015 budget on August 18, 2014; and WHEREAS, City is receiving property tax revenue pledged in the amount of two hundred fifty thousand dollars ($250,000) annually for the ten (10) year duration of this Project; and WHEREAS, the commencement of the loan is anticipated to be August 1, 2015 due to the Moscow/Pullman Airport design and construction of the Project; and WHEREAS, City has pledged the repayment of this investment of the Project over ten (10) years at a rate of two and one half percent per year, in ten (10) equal annual installments; and WHEREAS, City has pledged the repayment of these inter-fund investments from property taxes, the amount of two hundred fifty thousand dollars ($250,000) over ten (10) years, plus interest in the balance oukstanding over the ten (10) year time frame; and WHEREAS, the source of funds for this Project will be from various City Enterprise and Governmental Funds consistent with our investment policy adopted by the City Council; and WHEREAS, these investments are in accordance with Generally Accepted Accounting Principles (GAAP) and Governmental Accounting Standard Board (GASB) standards; and WHEREAS, these investments by any one fund may be "called" for the entire balance as may be necessary, and re-invested into another fund; and Resolution 2015-13 July 6, 2015 Page 1 of2 ---PAGE BREAK--- WHEREAS, the re-investments maintain the outstanding balance of the Project's loan; and WHEREAS, the source will not interfere with any projects or operational activities of the City; and WHEREAS, as a sponsor with the City of Pullman pertaining to the airport, City's commitment will be to participate equally in the financial aspect with our partner to ensure the realignment occurs; and WHEREAS, the City Council has determined that it is in the best interest for the City's economic vitality and long-term benefits to the City to pursue this Project; NOW, THEREFORE, BE IT RESOLVED by the Mayor and City Council of the City of Moscow as follows: 1. Pursuant to Idaho Code§ 50-1013 concerning authorization of municipal corporation's finances for Deposit and Investment of funds, City of Moscow's Investment Policy adopted by Resolution No. 2010-02, City's Financial policy adopted by Resolution No. 2011-11, and in accordance with the principles of GAAP and the standards of GASB; the Moscow City Finance Director is authorized to make inter-fund investments for the purpose of the Project in an amount not to exceed two million five hundred thousand dollars ($2,500,000); 2. Repayment of any investment for any outstanding balance shall be paid in equal installments and shall not exceed a ten (10) year repayment schedule. 3. That this Resolution shall become effective as of the 6th day of July, 2015. PASSED AND APPROVED by the Mayor of the City of Moscow, Idaho, this 6th day of July 2015. Bill Lambert, Mayor ATTEST: Resolution 2015-13 July 6, 2015 Page 2 of2