Chapter 3.22
INTERFUND LOAN PROGRAM

Sections:

3.22.010  Interfund loans authorized.

3.22.020  Report to the city council.

3.22.030  Repayment directed.

3.22.010 Interfund loans authorized.

The administrative services director is hereby authorized to administer an interfund loan program. The administrative services director shall make interfund loans as needed to keep the funds of the city solvent. In conjunction with interfund loans, the administrative services director shall prepare a planned schedule of repayment of the loan principal plus applicable interest. A reasonable rate of interest based on the external rate available to the city shall be charged by the lending fund, unless the borrowing fund has no other source of revenue other than the lending fund, or is normally funded by the lending fund. In addition, the borrowing fund must anticipate sufficient revenues to be in a position over the period of the loan to make the specified principal and interest payments. [Ord. 3649 § 1, 2007; Ord. 3431 § 1, 2002].

3.22.020 Report to the city council.

The administrative services director shall, as needed but not less frequently than once a quarter, include a report of any such loans and subsequent repayments to the city council in conjunction with the administrative services director's quarterly budget reports to the city council. Any city council member may request or the mayor direct the administrative services director to make such additional reports as may be necessary to fully inform the city council of any revenue deficit or interfund loan or similar transfer. [Ord. 3649 § 2, 2007; Ord. 3431 § 1, 2002].

3.22.030 Repayment directed.

The administrative services director is directed and authorized to repay such loans, in whole or in part, when budgeted general fund revenues are received sufficient to cover the projected foreseeable needs of the city for the ensuing month of the budget year. In the event of doubt regarding the foreseeable needs of the city, the finance director is encouraged to consult with the mayor and council president and to bring questions regarding borrowing or repayment to the city council for its advice. [Ord. 3431 § 1, 2002].