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KITTITAS COUNTY <br />BOARD OF COUNTY COMMISSIONERS <br />REsoLUnoN No.-2021 - JE tp <br />An lnterfund Loan in the amount of $1,000 <br />to Fund 113 Recreation <br />from Fund 106 County Road <br />WHEREAS; on May 6,2021, County Road transferred $1,000 to Recreation fund for a temporary loan, and <br />WHEREAS, on May 12, 2021, Recreation fund transferred $1,000 to County Road for repayment of the <br />temporary loan, and <br />WHEREAS; According to the Budqetinq, Accountinq and Reportinq Svstems Manual, Chapter 3.9.1 states: <br />1. The legislative body of a municipality must, by ordinance or resolution, approve all lnteffund loans, indicating <br />the lending and borrowing funds, and provide in the authorization a planned schedule of repayment of the loan <br />principal as well as setting a reasonable rate of interest (based on the external rate available to the <br />municipality) to be paid to the lending fund. The planned schedule of repayment should specify the due date(s) <br />of payment(s) needed to repay the principal and interest on the loan. <br />2. lnterest should be charged in all cases, unless.' <br />a. The borrowing fund has no other source of revenue other than the lending fund; or <br />b. The borrowing fund is normally funded by the lending fund. <br />3. The borrowing fund must anticipate sufficient revenues to be able over the period of the loan to make the <br />specified principal and interest paymenfs as required in the authorizing ordinance or resolution. <br />4. The loan status should be reviewed annually by the legislative body at any open public <br />meeting. <br />5. The term of the loan may continue over a period of more than one year, but must be "temporary" in the <br />sense fhaf no permanent diversion of the lending fund resulfs from the <br />failure to repay by the borrowing fund. A loan that continues longer than three years witl be scrutinized for a <br />permanent diversion of moneys. <br />WHEREAS: the instructions have been sent to the appropriate departments that loans must be approved by the <br />Board of County Commissioners and interest must be paid. <br />NOW, THEREFORE BE lT RESOLVED;that the Board of County Commissioners, after due consideration, <br />does hereby authorize the loan and repayment of the $1,000 from County Road to Recreation fund with interest paid on <br />May 28, 2021 , in the amount of $5.25 based upon the interest rate (.075 % daily rate for seven days) those funds would <br />have collected if invested. <br />APPROVED the 15th day of June2021 <br />BOARD OF COUNTY SIONERS <br />COUNry HI <br />t <br />trman <br />ABSENT <br />iadacz, Vice Chqirman <br />lerk of the Board oroe <br />Mandy holz, Deputy Clerk of the Board <br />Laura <br />s m er