Laserfiche WebLink
Item No. 7I <br />Type of Business: CB <br />WK: Work Session; PH: Public Hearing; <br />CA: Consent Agenda; CB: Council Business City of Mounds View Staff Report <br />To: Honorable Mayor and City Council <br />From: Charles Hansen, Finance Director <br />Item Title/Subject: Resolution 5829 Authorizing Interfund Loans for the <br />Year 2002 and Setting an Interest Rate on Loans <br />Date of Report: August 20, 2002 <br /> <br />Loans of cash between various city funds have been discussed on several occasions <br />this year. Shelly Eldridge of Ehlers and Associates appeared before the City Council at <br />a meeting on April 22, 2002 and made a presentation on the City’s TIF Districts, <br />including interfund loans from the Community Fund to the TIF District Funds. <br /> <br />At the July 1, 2002 Work Session there was a discussion of the Golf Course and loans <br />to it from the Water, Special Projects, and Vehicle & Equipment Funds. And at the <br />August 19, 2002 Work Session, the City’s auditors made a presentation of the 2001 <br />Annual Financial Report and interfund loans were discussed along with a requirement in <br />state law that interfund loans to TIF Districts be approved in advance by the City <br />Council. <br /> <br />The attached resolution authorizes the continuation through 2002 of interfund loans <br />existing on December 31, 2001. It also authorizes new interfund loans as needed from <br />the Community Fund to the TIF Districts up to the cash balance of $621,505 in the <br />Community Fund. <br /> <br />The resolution also sets an interest rate of 4.5% on all interfund loans for the year 2002. <br />This rate was recommended at both the April 22nd and July 1st meetings as being <br />reasonable in light of interest rates available in the market this year. <br /> <br />The interest rate on the loan from the Water Fund to the Golf Course has been 6.5% <br />and the interest rate on the loan from the Vehicle Fund to the Golf Course has been <br />5.0% through 2001. The loan from the Special Projects Fund to the Golf Course was <br />first created on December 31, 2001. Other interfund loans have been interest free. <br /> <br /> <br />Respectfully Submitted, <br /> <br /> <br /> <br />Charles Hansen