AN ORDINANCE relating to the financing of the General Fund; authorizing interfund loans up to a total amount of $205,000,000 from multiple City Funds to the General Fund as bridge financing to be repaid from future tax proceeds and other anticipated revenues; and ratifying and confirming certain prior acts.
Agenda Item five Council Bill 120147 relating to the financing of the general fund authorizing and to fund loans up to a total of 205 million from multiple city funds to the general fund as bridge financing to be repaid from future tax proceeds and other anticipated revenues and ratifying and confirming certain prior acts. The committee recommends that the bill pass. Thank you. Councilmember Mosquito, as chair of the committee, you recognized in order to provide the committee report. Thank you very much. Council President Pro Tem colleagues. I am again excited to be able to bring forward legislation to you that supports the Council's passage of Jumpstart Seattle's Progressive Revenue. We have not only eagerly anticipated the funds beginning to flow in January of 2022, expected amounts over $200 million. But we also anticipate that about 135 million of that annually will be available to critical investments like housing, like many of the callers called in about today. We also knew when we passed the Jumpstart Seattle Progressive Revenue Tax that the 2021 proceeds from that tax would not begin coming into the city coffers until 2022, and they would begin coming in in quarterly installments for this first year. We have made some important investments using the expectation of funds coming in soon because we knew that those funds would be available starting in 2022. However, we also recognize, along with the City Budgets Office and the Finance and Administrative Services Department, that as we are expecting these funds to come in, as they're coming in quarterly, we still need a bridge to help fund the spending that we have committed to until we receive those funds. So what we have in front of us today is an intra fund loan bill to be able to make critical payments towards services that we have committed to, while then also replenishing that entire fund loan with the Jumpstart Seattle revenue once it starts flowing into in 2022. The bill in front of us is a typical budget bill. It approves about $205 million from loans from several city funds as part of our inner fund loan package in front of us. Per the city's policy, the city's Debt Management Advisory Committee is compromised of myself, central staff, interim directors and either budget director Ben Noble, Finance Director Glen Lee and the Director of Public Utilities, Matt Hara, and Director of City Light, Deborah Smith. We, as the city's debt manager Policy Advisory Committee, met over two weeks ago to approve the interim loan in front of us. This again, is anticipated to be fully paid before the end of 2022, and we do not believe that we would even have to wait that long to be able to refill the Interphone loan. In fact, it's our expectation and assumption that the interim loan can be paid back by midyear next year or early fall next year. But just to ensure that we're giving ourselves a little ample time, we've authorized the fund, the Interphone loan to extend through the end of the year. As a reminder, this is the first year that jump start revenues will be paid again. They will be paid quarterly. So having some flexibility on when we pay back the loan and giving ourselves through 2022 to pay back this in our fund loan source or the sources makes a lot of sense. And our committee fully recommends passage of the bill in front of us today. In keeping us from risking our colleagues any comments on this bill? Okay. Well, the clerk please read. Will the clerk please call the role in the passage fill? Lewis. I want Alice. As most, whether I saw want. Yes. Strauss Yes. Herbold Yes. Suarez I know. Council President Pro Tem. Peterson high eight in favor and unopposed. Thank you. The bill passes and the chair will sign it with the clerk. Please affix my signature to the legislation on my behalf. Now, under the Public Assets and Native Communities Committee report. Item six Will the clerk please read the short title of item six into the record?