City financial management policies, which are approved as part of the Biennial Budget, provide for issuance of interfund loans with approval from Council.  Interfund loans provide operational flexibility to cover authorized expenditures, such as when the City is awaiting reimbursement of expenses from grants, the collection of user fees such as vehicle license fees, or receipt of tax credits.

Council approval of Resolution No. 5498 will authorize the City’s Finance Department to prepare an interfund loan, if and when it may be needed, from the General Fund and/or the Cumulative Reserve Fund to a fund or funds supported by grants, fees, or tax credits in the event the City is awaiting reimbursement of federal, state or local grant funds, collection of user fees, or receipt of tax credits.  The authority is limited to $2.5 million and the resolution is effective for 3 years through February 2023, at which time its authority will lapse.

Council authorization is requested to enable the aforementioned flexibility in managing the City’s short-term funding needs in the Arterial Streets Program, Community Development and Block Grant Fund, and Local Revitalization Area Debt Service Fund.