City of Ashland, Oregon / City Recorder / City Council Information / Packet Archives / Year 2003 / 07/15 / RESO - Interfund Loan
RESO - Interfund Loan
[Council Communication] [Proposed
Resolution]
Council Communication
| Title: |
A Resolution Authorizing an Interfund Loan to the Telecommunications
Fund. |
| Dept: |
Finance Department |
| Date: |
July 15, 2003 |
| Submitted By: |
Lee Tuneberg, Finance Director |
Approved
By:
........................... |
Gino Grimaldi, City Administrator |
| Synopsis: |
This resolution permits the City to borrow money from one
fund and to transfer to another. The Telecommunications Fund will be borrowing
from the Wastewater Fund in accordance with the adopted FY 2003-2004 budget. |
| Recommendation: |
Staff recommends approval of the attached resolution. |
| Fiscal Impact: |
Approval funds operations in the Telecommunication Fund up
to the appropriation limits established within the adopted budget. |
| Background: |
ORS requires the City Council to authorize a loan from one
fund to another. If a loan if not repaid by the end of the fiscal year,
it must be budgeted and repaid in the following year’s budget. The
borrowing fund will pay interest based on the Local Government Investment
Pool interest rate at the date of the loan, or the date of repayment, whichever
is higher.
The Telecommunications Fund loan of $6,950,000 will provide cash flow
for the accumulated operating losses and for operating costs during FY
2003-2004 for the Ashland Fiber Network. This amount is consistent with
the adopted 2003-04 budget.
Additional funds needed beyond the prior year amount are loaned only
when cash flow in the borrowing fund requires it. An example is the borrowing
of $5.9 million in FY 2002-2003 when $6.625 million was budgeted and authorized.
Per Budget Committee and Council direction, staff is reviewing the financing
plan for AFN and any changes to this authorization will be brought back
for approval.
|
RESOLUTION NO. 2003-__________
A RESOLUTION AUTHORIZING AN INTERFUND LOAN TO THE TELECOMMUNICATIONS FUND
Recitals:
A. ORS 294.460 requires an ordinance or resolution to permit a loan from one
fund to another; and
B. A loan cannot be made from a debt service fund to any other fund, and
C. If the loan will not be repaid by the end of the fiscal year, it must be
a budgeted requirement in the following year’s budget.
THE CITY OF ASHLAND RESOLVES AS FOLLOWS:
SECTION 1. The Finance Director is hereby authorized to borrow up to $2,275,000
from the Water Fund, up to $4,275,000 from the Wastewater Fund and up to $400,000
from the Electric Fund for the Telecommunications Fund.
SECTION 2. The loan will be made prior to July 31, 2003, or as needed throughout
the fiscal year and will be repaid with accrued interest prior to July 31, 2004.
SECTION 3. Interest will be charged at the Local Government Investment Pool
interest rate at the date of the loan or the date of repayment, whichever is
higher. Interest shall be paid quarterly.
SECTION 4. This resolution takes effect upon signing by the Mayor.
This resolution was read by title only in accordance with Ashland Municipal
Code §2.04.090 duly PASSED and ADOPTED this 15th day of July, 2003.
Barbara Christensen, City Recorder
SIGNED and APPROVED this 15th day of July, 2003.
Alan W. DeBoer, Mayor
Reviewed as to form:
Paul Nolte, City Attorney
End of Document - Back to Top
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