Title
REPORT ON LOAN STATUS OF THE INTERFUND LOAN FROM THE GENERAL FUND TO THE ARTERIAL STREET FUND
COUNCIL INITIATIVE ADDRESSED:
Continue effective financial management
CITY ATTORNEY REVIEW: N/A
SUMMARY STATEMENT:
On February 11, 2016 Council approved Resolution No. 2166 authorizing interfund loans from the General Fund to the Arterial Street Fund and Community Development Block Grant Entitlement Fund. Resolution No. 2166 provided for an interfund loan from the General Fund to the Arterial Street Fund in the amount of $1,435,000.00; and an interfund loan to the Community Development Block Grant Entitlement Fund in the amount of $55,000.00. These interfund loans were necessary to provide for the respective 2015 year-end cash deficits in each of the aforementioned funds.
The purpose of this agenda item is to report that as of September 30, 2016 the Community Development Block Grant Entitlement Fund loan in the amount of $55,000.00 has been repaid in its entirety from Community Development Block Grant Entitlement proceeds received from the U.S. Department of Housing and Urban Development.
As it relates to the Arterial Street Fund loan, this agenda item is to inform Council that on September 30, 2016 the Arterial Street Fund paid $300,000.00 against the $1,435,000.00 principal loan balance outstanding. In addition to the loan principal, the General Fund received loan interest in the amount of $4,895.74. Loan interest is based on the average interest rate of the Washington State Treasurer’s Local Government Investment Pool for the period in which the loan was outstanding. For the period January 1, 2016 through September 30, 2016, the average Local Government Investment Pool interest rate was 0.34%.
On September 30, 2016 the remaining principal balance on the interfund loan from the General Fund to the Arterial Street Fund is $1,135,000.00.
RECOMMENDED ACTION:
None
STAFF CONTACT:
David Campbell, City Manager
Kurt S...
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