Agenda Item Title:
Approve Request for Interfund Loan of $4,000,000 Between General Fund and Parking Lot & Area Fund
Origination Group:
Legal & Finance Committee
Origination Meeting Date:
08/31/2022
City Council Hearing Date:
09/06/2022
Staff Contact:
Pauline Sumption, Finance Director
Agenda Item Summary:
The Parking Lot & Area Fund, an enterprise fund, is looking to complete major repairs and renovations to the parking ramp structure. The estimated cost is approximately $4,000,000. At this time, the fund has about $2.6 million in the fund and it is our desire to continue building reserves for other needs of the enterprise fund. The Parking Lot & Area Fund would pay back the loan from the General Fund over a period not to exceed 10 years at the rate of 3 percent through operating revenues. Interest being earned on City bank accounts is much less than the 3 percent and quoted rates from 4 different banks came in quite a bit higher. Approving this interfund loan would earn additional interest income for the General Fund while saving interest expense for the Parking Lot & Area Fund.
Funding Source & Fiscal Impact (if applicable):
| Funding | Cost Center |
|---|---|
Funding Source & Fiscal Impact Notes:
None
Recommendations:
Origination Recommendation Action:
Approve