Resolution 02-010 County Loan to City, Regular Property Tax NO. 02-10
BEFORE THE CITY COUNCIL
OF THE CITY OF SPOKANE VALLEY, WASHINGTON
IN THE MATTER.OF A LOAN FROM )
SPOKANE COUNTY TO THE CITY OF )
SPOKANE VALLEY PAYABLE FROM ) RESOLUTION
ROAD DISTRICT REGULAR )
PROPERTY TAX COLLECTION )
DISTRIBUTIONS
WHEREAS, pursuant to chapter 35.02 RCW, the City of Spokane Valley was
incorporated having an "official date of incorporation" of March 31, 2003; and
WHEREAS, pursuant to RCW 35.02.270, counties may make interest free loans to newly
formed cities to facilitate the transition to an incorporated city; and
WHEREAS, pursuant to RCW 35.02.180, territory included within a newly incorporated
city shall be removed from the road district as of the "official date of incorporation"; and
WHEREAS, whenever any territory forming a part of an incorporated city is part of a
road district and road district regular property taxes are collectable on property within such
territory, the same shall, when collected by the county treasurer, be paid to such city and placed
in the city street fund; and
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WHEREAS, the City of Spokane Valley will experience a temporary cash flow shortage
and as a result thereof has requested that Spokane County loan it S 1,000,000.00; and
WHEREAS, Spokane County has agreed to make an interest free loan to the City of
Spokane Valley of$1,000,000.00 in installments of$300,000.00 upon execution of a Promissory
Note, $250,000.00 on .January 10, 2003, $250,000.00 on February 10, 2003 and $200,000.00 on
March 10, 2003. The loan would be subject to the following conditions:
(I) the City of Spokane Valley repay Spokane County the sum of$1,000,000.00
by executing a Promissory Note which would authorize the Spokane County Treasurer to
automatically deposit in the Spokane County Current Expense Fund No. 010 all Spokane
County Road District regular property taxes that are collected after March 31, 2003 on
any property within the City of Spokane Valley until such date as such deposits equal
$1,000,000.00, and
(2) the City of Spokane Valley pay to Spokane County on or before March 31,
2003 all interest earned on such loan installments.
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WHEREAS, the City of Spokane Valley agrees to the conditions set forth in the
immediately preceding recital as a condition of Spokane County making an interest free loan to
the City of$1,000,000.00 in installments of$300,000.00 upon execution of a Promissory Note,
$250,000.00 on January 10, 2003, $250,000.00 on February 10, 2003 and $200,000.00'on March
10, 2003.
NOW, THEREFORE, BE IT HEREBY RESOLVED by the City Council of Spokane
Valley, that the Mayor be and is hereby authorized to execute, at other than an open meeting, any
and all documents necessary for the City of Spokane Valley to obtain a loan from Spokane County
of $1,000,000.00 in installments of $300,000.00 upon execution of a Promissory Note,
$250,000.00 on January 10, 2003, $250,000.00 on February 10, 2003 and $200,000.00 on March
10, 2003, which loan will be repaid by the City of Spokane Valley authorizing the Spokane County
Treasurer to automatically transfer and deposit all collected Road District taxes that would
otherwise go to the City of Spokane Valley under RCW 35.02.040 after March 31,2003 to
Spokane County until such date as said deposits amount to $1,000,.000.00.
PASSEL)AND ADOPTED this /d day of �6'CC9rr►bey- 2002.
CITY OF SPO E V LLEY
Ry:���• �+li
Mayor
ATTEST: Approved as to Form:
City;,Oler
B : - i • 427 13y:
S:nley S v z, Interi i City Attorney
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