The treasurer is hereby authorized to administer an interfund loan program. Only municipal monies which are clearly inactive or in excess of current needs for the anticipated length of the loan and legally available for investment (i.e., no restrictions) shall be utilized for interfund loans. The treasurer shall make interfund loans as needed to keep the funds of the city solvent. In conjunction with interfund loans, the treasurer shall prepare a planned schedule of repayment of the loan principal plus applicable interest. The monthly rate of interest will be the same monthly rate of interest paid by the Washington State Local Government Investment Pool (LGIP), and 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. 906 § 1 (part), 2020)
The treasurer shall include a report within thirty (30) days of any such loans and subsequent repayments to the city council in conjunction with the treasurer's budget reports to the city council. Any city council member may request, or the mayor direct the treasurer 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. 906 § 1 (part), 2020)
The treasurer is directed and authorized to repay such loans, in whole or in part, when the budgeted 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 treasurer is encouraged to consult with the mayor and to bring questions regarding borrowing or repayment to the city council for its advice.
(Ord. 906 § 1 (part), 2020)