19790911 r-79-14RESOLUTION NO. R-79-14
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF FAIRFAX, VIRGINIA, EX-
PRESSING A REQUEST TO THE BOARD OF DIRECTORS OF THE WASHINGTON METRO-
POLITAN AREA TRANSIT AUTHORITY (WMATA) TO HAVE THE RESPECTIVE STAFFS
CONSULT WITH EACH OTHER CONCERNING AN INTEREST CREDIT ON THE CITY'S
CAPITAL CONTRIBUTION
WHEREAS, the City of Fairfax is a signatory of the 1970 Capital Contribu-
ions Agreement which provides for the local government funding share of the
cost of constructing Metro, the subway system operated by the Washington Metro-
)olitan Area Transit Authority; and
WHEREAS, the 1970 Capital Contributions Agreement contained a Capital
ipts Schedule that required the local governments to contribute to Metro at
annual percentage shares of their total contribution that were approximately
equal; and
WHEREAS, previous recomputations of~the City of Fairfax contribution to
construct the subway have reduced the City's share from $2.6 million to $2.0
Ilion; and
WHEREAS, the City contribution was fully paid in 1975; and
WHEREAS, the City would have had the opportunity to invest certain of these
funds for the purpose of earning an estimated $637,200 in interest if the City
contribution had been paid to WMATA based on a more accurate Capital Receipts
Schedule; and
WHEREAS, WMATA has credited interest to loca) governments who have paid
ions of their capital contributions in advance of the Capital Receipts
~chedule;
NOW THEREFORE BE IT RESOLVED, that the City Council of the City of Fairfax
expresses a request to the WHATA Board of Directors to direct their staff to con-
sult with the City staff regarding the issue of an interest credit to the City
for the City's prepaid contribution toward subway construction based on the
Capital Receipts Schedule.
R-79-14
-2-
~uch interest credit would be used only to defray future capital costs of Hetro
allocated to the City of Fairfax as a result of any subsequent recomputation
:hat increases the City share beyond $2 million.
Adopted: September li, 1979
kTTEST:
Mayor