613 UDAG Temp Loan CITY OF YELM
ORDINANCE N0.613
An ordinance approving a $73,000.00 loan from the UDAG Fund (198) to the
Sewer Operations Fund (412) to balance the fund while waiting for revenue
from the EPA.
WHEREAS, the City obtained grant funding from various agencies for the construction of a
STEP Sewer System and a Wastewater Treatment Plant; and
WHEREAS, grant funding is generally provided on a reimbursement basis with the last
reimbursement being made following an audit of the City's performance in meeting grant
requirements; and
WHEREAS, the Sewer Operating Fund is experiencing a shortfall that will be corrected by
receipt of the expected grant funds;
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 $73,000 from the UDAG
Fund (198) to the Sewer Operations Fund (412).
SECTION 2. The annual interest rate shall be set at 3% and charged on a daily basis equal to
$6.00 per day.
SECTION 3. Payment of both principal and interest shall be made in a lump sum at the time
reimbursement is received from the granting agency.
SECTION 4. This ordinance shall become effective five days following publication.
ADOPTED this 10th day of December, 1997 .
Kat M. olf, Mayor
Attest:
~ ~ ~
Agn s P. Bennick, City Clerk
PASSED and APPROVED: December 10, 1997
EFFECTIVE: December 23, 1997
PUBLISHED: Nisqually Valley News, December 18, 1997