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J-1> L, <br />Mr Mkj n,I MAYOR i CITi CiONCIL <br />FROM: Finance Director -Treasurer Rrager (Ills— <br />DATE: May 6, !986 <br />RE: INI'ERFUND LOAN FOR WARMING 110USF.S <br />During the presentation of the Auditor's 1985 Management Report <br />and Recommendations, at the May Sth Agenda Session, an interfund <br />loan for warming houses was discussed. This loan was made for an <br />unbudgeted 1982 purchase of three used portable classroom <br />buildings which were subsequently modified and installed as <br />warming houses in City parks. A copy of the motion approving the <br />purchase and the loan is attached for your re%iew. <br />The only objection that the Auditor's have had is that the motion <br />Approving the loan did not specify any terms for the loan (i.e. <br />interest and/or a repayment schedule). Each Management Report <br />and Recommendations written since 1982 has suggested that the <br />City take action to approve a payment schedule. At the May 5th <br />Agenda Session i suq'leeled that C, ncil approve a reEoluti^n <br />authorising a partial repayment ofV$10,000. If council wishes to <br />do so a proposed resolution is attached for your consideration. <br />While I was drafting that resolution I was thinking of other <br />issues affecting Parks 6 Recreation. I recalled that <br />Cnuncilmember Ouick augqPated during one of our recent goal <br />setting sessions that a Park Maintenance 6 improvement Plan be <br />developed similiar to the 1983 Water c Sewer S;•stem Maintenance <br />and Capital Improvements Program. I ther thought that the <br />Council has an opportunity now to provide :,ome funding for Park <br />Improvements on a one time basis. Two actions could be <br />undertaken: <br />1) Make the inan a gift or donstior by rana..11ing it and <br />considering the funds which were used purchase the portable <br />classrooms a permanent interfund transfer. <br />2) Transfer the $10,000 of the Recreation Activity Fund which <br />would have been used to partially repay the interfund loan to the <br />Park Improvement Fund. The City code specifies that any monies <br />in the Park Improvement Fund are to be used only for capital <br />improvements to City Parks. A proposed-e-olution undertaking <br />that action is attached for your consideration. <br />Staff requests Council direction as to how to proceed in this <br />matter: beq,n to repay the interfund loan and specify it's terms <br />or cancel the loan and make a permanent transfer to the Park <br />Improvement Fund. <br />DR/ds <br />Attachment <br />