10b. Memo

Resolution No 3804

AGENDA MEMORANDUM                        Item No.          10b 
ACTION ITEM                            Date of Meeting       June 28, 2022 
DATE:     June 8, 2022 
TO:        Stephen Metruck, Executive Director 
FROM:    Elizabeth Morrison, Director, Corporate Finance 
Scott Bertram, Manager Corporate Financial Analysis 
SUBJECT:  Resolution No. 3804 – Amending Resolution No. 3801 which authorized the Issuance
and Sale of Intermediate Lien Revenue and Refunding Bonds. 
Request introduction and adoption of Resolution No. 3804: A Resolution of the Commission of
the Port of Seattle amending Resolution N. 3801 that authorizes the issuance and sale of
Intermediate Lien revenue and refunding bonds; amending the maximum interest rate under
which the Executive Director may approve the sale of the bonds from 4.5 percent to 5.5 percent. 
Consolidation of the readings per Commission Bylaws and Rules of Procedure is requested in the
interest of an efficient bond sale. 
On April 26, 2022, the Commission adopted Resolution No. 3801 authorizing the sale and
issuance of Intermediate Lien Revenue and Refunding bonds in an amount not to exceed
$1,000,000,000. Section 7(b) of Resolution No. 3801 delegates approval of the bond sale to the
Executive Director so long as the total interest rate is no greater than 4.5 percent (maximum
interest rate). Staff requests that the maximum interest rate be amended to 5.5 percent. 
From the beginning of 2022 to the adoption of Resolution No. 3801 ten-year Treasury rates
increased over 130 basis points (1.3 percent).  The maximum interest rate of 4.5 percent
incorporated both the known rate increase through adoption plus an anticipated additional rate
increase. Since that time,  however, rates have increased more significantly than forecasts
anticipated, and municipal bond rates have increased disproportionately and been more volatile
than treasury rates. Many investors have moved funds out of municipal bonds creating a supply 
and demand imbalance.  Therefore, staff recommends an increase to 5.5 percent to provide
flexibility to proceed with the sale if rates continue to rise more than anticipated.

Template revised September 22, 2016.

             COMMISSION AGENDA – Action Item No. 10b                                 Page 2 of 2 
Meeting Date: June 28, 2022 
Resolution No. 3804 amends Resolution No. 3801 Section 7(b). This section provides for the sale
of bonds and delegates the approval of the sale to the Executive Director within certain
limitations. The current limitations are: 
Maximum size:                    $1,000,000,000 
Maximum interest rate:                  4.5% 
Expiration of Delegation of Authority: December 31, 2022 
Staff is recommending that the maximum interest rate be amended to 5. 5% .
(1) Draft Resolution No. 3804 
(2) Previously Adopted Resolution No.3801 

April 26, 2022 – Adoption of Resolution No. 3801 
April 12, 2022 – Introduction of Resolution No. 3801 
October 26, 2021 – The Commission was briefed on the Draft Plan of Finance 

Template revised September 22, 2016.


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