Interfund lending may be considered as an option to meet an immediate short-term financing need between funds. The loans shall be accounted for as a temporary borrowing and this method of short-term financing will only be used to meet immediate financing needs or temporary cash deficiencies. Any interfund loans not originating from within the Pooled Cash Fund shall be governed by the following guidelines:
(A) The City Council must, by ordinance or council decision request (CDR), approve all interfund loans. The ordinance or CDR shall contain the amount of the loan, the funds involved, the purpose of the loan, the source of funds for repayment, and provide in the authorization a planned schedule of repayment of the loan.
(B) 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 as required in the authorizing ordinance or resolution.
(C) The term of the loan cannot exceed five years.
(Ord. 2011-5325, passed 9-6-2011)