Recitals:

The Human Capital Management System (HCMS) project is a technology project that funds the planning, design, and replacement of the aging Human Resource Information System (HRIS), which includes the Citywide payroll and benefits system, with a new HCMS also known as Workday.

Seattle Municipal Code subsection 5.06.030.C requires City Council approval by ordinance of any interfund loan for a duration of more than 90 days.

Ordinance 127131 authorized a revolving interfund loan of $11 million to the 2025 Multipurpose LTGO Bond Fund.

Ordinance 127266 amended Ordinance 127131, authorizing an increase in the interfund loan amount from $11 million to $13.2 million and the addition of the 2026 Multipurpose LTGO Bond Fund as a borrowing fund.

Funds loaned by the Finance and Administrative Services Fund to the 2026 Multipurpose LTGO Bond Fund to implement the HCMS project were anticipated to be repaid from the 2026 limited tax general obligation (LTGO) bond issuance.

The City decided not to issue LTGO bonds during 2026.

The City anticipates issuing LTGO bonds in 2027, which proceeds will be used as the source of the loan repayment to the Finance and Administrative Services Fund.

In the normal course of business the City may temporarily lend cash between funds to maintain required balances.

The Director of Finance and the City Budget Director have determined that City Council will be acting consistently with the Debt Management Policies adopted by Resolution 31553 by authorizing an extension of the interfund loan to account for the later issuance of LTGO bonds.

Funds loaned by the Finance and Administrative Services Fund to the 2026 Multipurpose LTGO Bond Fund are anticipated to be repaid from the 2027 LTGO bond issuance.

There is sufficient cash in the Finance and Administrative Services Fund to support the extension of this revolving interfund loan of up to $13,200,000 through December 31, 2027 and still meet regular budgeted operating needs. Therefore,

Be it ordained by The City of Seattle as follows:

Section 1. Sections 1 and 2 of Ordinance 127131, last amended by Ordinance 127266, are further amended as follows:

Section 1. The Director of Finance is authorized to make a revolving loan of up to $13,200,000 principal and interest outstanding from the Finance and Administrative Services Fund to the 2025 Multipurpose LTGO Bond Fund and the 2026 Multipurpose LTGO Bond Fund to provide bridge financing for the HCMS project that will be financed by authorized limited tax general obligation (LTGO) bond proceeds. The loan is to be repaid no later than December 31, ((2026)) 2027, with interest on the loan at the rate of return of the City’s Consolidated Cash Pool. Of the entire principal and interest amount of the loan drawn, $11,000,000 ((is intended to be)) was repaid with proceeds from the sale of tax-exempt LTGO bonds in 2025, and an additional $13,200,000 is intended to be repaid with proceeds from the sale of tax-exempt LTGO bonds in ((2026)) 2027.

Section 2. The Director of Finance may effectuate the loan authorized in Section 1 of this ordinance by transferring cash from the Finance and Administrative Services Fund to the 2025 Multipurpose LTGO Bond Fund and the 2026 Multipurpose LTGO Bond Fund, or by carrying the 2025 Multipurpose LTGO Bond Fund or the 2026 Multipurpose LTGO Bond Fund in a negative cash position, in an amount not to exceed $13,200,000 until no later than December 31, ((2026)) 2027. The Director of Finance is further authorized to establish, and modify, if necessary, from time to time, a repayment plan and schedule.