HomeMy WebLinkAboutRes-2021-096KITTITAS COUNTY
BOARD OF COUNTY COMMISSIONERS
REsoLUnoN No.-2021 - JE tp
An lnterfund Loan in the amount of $1,000
to Fund 113 Recreation
from Fund 106 County Road
WHEREAS; on May 6,2021, County Road transferred $1,000 to Recreation fund for a temporary loan, and
WHEREAS, on May 12, 2021, Recreation fund transferred $1,000 to County Road for repayment of the
temporary loan, and
WHEREAS; According to the Budqetinq, Accountinq and Reportinq Svstems Manual, Chapter 3.9.1 states:
1. The legislative body of a municipality must, by ordinance or resolution, approve all lnteffund loans, indicating
the lending and borrowing funds, and provide in the authorization a planned schedule of repayment of the loan
principal as well as setting a reasonable rate of interest (based on the external rate available to the
municipality) to be paid to the lending fund. The planned schedule of repayment should specify the due date(s)
of payment(s) needed to repay the principal and interest on the loan.
2. lnterest should be charged in all cases, unless.'
a. The borrowing fund has no other source of revenue other than the lending fund; or
b. The borrowing fund is normally funded by the lending fund.
3. The borrowing fund must anticipate sufficient revenues to be able over the period of the loan to make the
specified principal and interest paymenfs as required in the authorizing ordinance or resolution.
4. The loan status should be reviewed annually by the legislative body at any open public
meeting.
5. The term of the loan may continue over a period of more than one year, but must be "temporary" in the
sense fhaf no permanent diversion of the lending fund resulfs from the
failure to repay by the borrowing fund. A loan that continues longer than three years witl be scrutinized for a
permanent diversion of moneys.
WHEREAS: the instructions have been sent to the appropriate departments that loans must be approved by the
Board of County Commissioners and interest must be paid.
NOW, THEREFORE BE lT RESOLVED;that the Board of County Commissioners, after due consideration,
does hereby authorize the loan and repayment of the $1,000 from County Road to Recreation fund with interest paid on
May 28, 2021 , in the amount of $5.25 based upon the interest rate (.075 % daily rate for seven days) those funds would
have collected if invested.
APPROVED the 15th day of June2021
BOARD OF COUNTY SIONERS
COUNry HI
t
trman
ABSENT
iadacz, Vice Chqirman
lerk of the Board oroe
Mandy holz, Deputy Clerk of the Board
Laura
s m er