612 CDBG Temp Loan CITY OF YELM
ORDINANCE N0.612
An ordinance approving a $3,790.00 loan from the Current Fund (001) to the
Community Development Block Grant Fund (197) to balance the fund while
waiting for reimbursement from the granting agency.
WHEREAS, the City has agreed to act as lead agency for CDBG grant purposes; and
WHEREAS, all grant funds are paid out on a reimbursement basis; and
WHEREAS, CDBG grant requirements call for the rapid disbursement of funds from the lead agency to
project vendors thereby making necessary the advance preparation and holding of checks; and
WHEREAS, City Council approval is necessary prior to the issuance of all checks; and
WHEREAS the preparation and holding of this check has created a temporary shortfall in the CDBG
fund;
NOW, THEREFORE, the City Council of the City of Yelm, Washington, does ordain as follows:
SECTION 1. There is hereby authorized a six month loan in the amount of $3,790.00 from the Current Fund
(001) to the CDBG Fund (197).
SECTION 2. The annual interest rate shall be set at 3% and charged on a daily basis equal to $.52 per
day.
SECTION 3. Payment of both principal and interest shall be made in a lump sum at the time reimbursement is
received f rom the granting agency.
SECTION 4. This ordinance shall become effective five days following publication.
ADOPTED this 10th day of December, 1997 .
K thryn M. Wolf, ayor
Atte
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A es P. Bennick, City Clerk
PASSED and APPROVED: December 10, 1997
EFFECTIVE: December 23, 1997
PUBLISHED: Nisqually Valley News, December 18, 1997