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Mounds View City Council May 27, 1986 <br />Regular Meeting Page Four <br />aerk /Administrator,.Pauley explained this item was 11. Consideration <br />carried over from the last agenda session, at the of Staff Memo <br />request of the Council. Regarding <br />Interfund Loan Hankner stated she felt an interest for Warming <br />rate and payment plan should be specified for Houses <br />this, as has been done for all other projects that <br />have been interfunded in the City. <br />Councilmember Blanchard explained the process that <br />was used when the Council originally began the <br />interfund loan program, and how the availability <br />of the warming houses occurred. <br />Mayor Linke stated he would like to see the fund <br />kept, with a $10,000 balance. <br />Finance Director stated it would have to be <br />clarified which fund the money should be kept in. <br />There was considerable discussion among the Council <br />of the current policies and intentions on granting <br />the loans and the planned repayment. <br />Finance Director Brager asked if the Council wanted <br />o forgive the loan, and if so, asked what would be <br />one with the funds that are available to be used to <br />repay part of the loan. He addeded that•if it is <br />going to be repaid, the Council should establish <br />the terms at this time. <br />Motion /Second: Linke /Quick to forgive the $24,000 <br />loan on the warming houses and have $10,000 from the <br />Recreation Fund put into a fund that would provide for the <br />interest to be used by the Park and Rec Department and the <br />Park and Rec Commission for further improvements to the <br />park system, and from this point on, the Council will set <br />an interfund loan policy stating the interest rate and <br />repayment plans. <br />3 ayes <br />2 nays Motion Carried <br />Councilmembers Blanchard and Haake voted against the <br />motion, with both stating they felt the loan should <br />be repaid. <br />Councilmember Blanchard made reference to the memo <br />to the Council from Finance Director Brager, pointing <br />out the ramifications of the Graham Rudman act on <br />the City, and she stated she felt very strongly that <br />he loan should be repaid. <br />Councilmember Hankner stated she feels a policy is <br />needed on interfund loans, and an interest rate <br />charged and a payment schedule set up. She added, <br />however, that since terms were not set up at the <br />