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Mounds view City ('nunciI May 27, 1986 <br />Regular Meeting Page Foar <br />---------------------------------------------------------------------- <br />Clerk/Admiristrator Pauley explained this item WAS 11. Considerati< ' <br />carried over from the last agenda session, at the of Staff Memc <br />request of the Council. Regarding <br />Interfund Loan <br />Cnuncilmember Ilankner stated she felt An interest for warming <br />rate and payment plan should be specified for finuses <br />this, as has been done for all other projects that <br />have been interfunded in the City. <br />Cnuncilmember 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 Rrage.r asked if the Council wanted ' <br />to forgive the loan, And if so, asked what would he <br />done with the funds that are available to be used to <br />repay part of the loan. Re addeded that if it is <br />going to be repaid, the Council should establish <br />the terms at this time. <br />Motion SeTcond: Linke/Quick to forgive the $24,noo <br />—L-- <br />IoAn 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 inLeresL rate and <br />repayment plans. <br />3 ayes ' 2 nays Motion Carried <br />Councilmembers Blanchard and IlAake voted against the <br />motion, with both stating they felt the loan should <br />Fp repaid. <br />Cnuncilmember 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 />the loan should be repaid. <br />Councilmember Ilankner 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 />