HomeMy WebLinkAboutResolution 00-113 N.C.S. 06/26/2000
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4 lZesolution I~Io. 00-113 ~.C.s.
5 of the City of Petaluma, California
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11 RESOLUTION TO ADOPT AN INTERFUND LOAN POLICY
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15 WHEREAS, some of the City's separate Funds have occasional needs for temporary
16 borrowing and the other Funds have cash available to lend; and
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18 WHEREAS, an Interfund Loan Policy has been developed that would authorize the Finance
19 Director to approve and repay short-term interfund loans (six months) with interest except
20 where prohibited by law; and would authorize the City Manager to approve long-term
21 interfund loans (12 months or more only when authorized by the City Council by Resolution)
22 by issuing a Promissory Note to designate the lending Fund, the amount, the interest rate, and
23 the terms for repayment; and
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25 WHERAS, the Interfund Loan Policy prohibits loans from the Low and Moderate Income
26 Housing Fund; and
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28 WHEREAS, the Interfund Loan Policy directs the Finance Director to report all interfund
29 loans each quarter in the Treasurers Report,
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31 NOW, THEREFORE BE IT RESOLVED that the City Council has reviewed the Interfund
32 Loan Policy and recommends adoption.
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Under the power and authority .conferred upon this Council by the Charter of said City.
REFERENCE: Y hereby certify the foregoing Resolution was introduced and adopted by the Apprfovemd as to
Council of the City of Petaluma at a (Regular) y(A~]~i3frdld;4KdTaI) meeting
on the ..26t~1'-=°---..... day of .........,7u1:?e.,.....~.Q_QQ 1~......, by the
following vote:
C ty ttorney
AYES: Healy, Cader-Thompson, Keller, Vice Mayor Tom-r~-t
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NOES: None
ABSENT: Maguire, Hamilton, Mayor ,Thompson _
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ATTEST:
City Clerk Mayor V l C 2
Council Fiie
@'A 1Uft5 Rcs. Nn.....O.O.-.]..~..3.... N.C.S.
CITY OF PETALUMA, CALIFORNIA
MEMORANDUM
Finance Department, I1 English Street, Petaluma, CA 94952
707-778-4352 Fax 707-778-4428 E-mail: n~nnce(a~ci.petnlurnaca.us
DATE: June 27, 2000
TO: Frederick Stouder, City Manager
FROM: Paula M. Cornyn, Interim Finance Director
SUBJECT: Interfund Loan Policy
The revised policy for Interfund Loans is based upon the discussion at the June 26,2000 Council meeting.
Short-Term Interfund Loans.
A short-term is a period up to six months. These cash shortages would. be covered at the end of each
quarter by borrowing from a similaz type of fund and the borrowing fund will pay interest on the amount
borrowed. The interest'would be paid quarterly at the rate that is earned on the City Treasurer's
Investment Portf,~lio. An example would be a cash shortage in the Community Dee~elopment .Block
Grant (CDI3Ci~ f t;nd, whiclc is funded. by a re:rribursement grant:, The CDBG Fiord could .born°cw
temporarily froit~ 'she HCMEB~(JIN Grat'it Programs Fund and repay as soon as the CDBCi grant r~:~oney
has been received. The rinance Direcser ~-~ouid'be authiorized to initiate and repay these loans up tc7 a
cap of $200,000.
Long-Term Interfund Loans
Along-term. is a period of one year or more. These cash shortages would be covered at the end of the
quarter by borrowing from a similar type of fund and repayment would include interest. A Promissory
Note (Note) would be executed by-the City Treasurer and authorized by the City Manager. The Note
would designate-the lending fund, the .interest rate, the total amount to be borrowed, repayment terms
and any other conditions that would be appropriate. Examples would be the cash shortages in the Airport
Operations Fund and the Mazina Fund that have already existed for over one yeaz.
General Parameters
The process that is used to identify a lender fund will include an analysis of the cash needs of that fund.
The Adopted Budget and the five years Capital Improvement Plan will be used to identify future cash
needs before an interfund loan is'initiated. There. will be fixed terms for. repayment of long-term interfund
loans. The Promissory Note will disclose the maximum time period for repayment. It is the intent that
interfund loans will be repaid within five years to a maximum of fifteen years. The shortest time period
possible will be chosen. Interest will not be charges if any law restricts the borrowing fund from paying
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The City Coanci; ~~il re~~:~zw all interfund loam :n amounts that exceed $20J,O~J. ~ status report on all
• interfund loans will be included with the Quarterly Treasurer's Report.
There will not be any loans from the Low and Moderate Income Housing Fund.
Rest do-- (l3 Nc1S