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Item Coversheet Page 1 of 1 <br /> in <br /> Financial Management <br /> DATE: 12/12/2017 <br /> MEMO: Letter to the Decatur City Council Financial Management Department 2017- 15 <br /> TO: Honorable Mayor Moore Wolfe and City Council Members <br /> FROM: Tim Gleason,City Manager <br /> Gregg D.Zientara,City Treasurer&Director of Finance <br /> SUBJECT: Resolution Authorizing the City of Decatur to provide an Interfund Cash Advance to the Decatur Public Transit <br /> System Fund <br /> SUMMARY RECOMMENDATION: <br /> City Administration recommends City Council approval of the attached Council Resolution. <br /> BACKGROUND: <br /> The City of Decatur Public Transit is primarily funded through operating grants received from the State of Illinois Department of <br /> Transportation. <br /> The Council Resolution herewith is requesting approval as a precautionary measure in the event that the City of Decatur Public <br /> Transit System does not receive the State of Illinois Department of Transportation 1St and 2"d Quarter operating grants,which is on <br /> file with the State of Illinois and pending disbursement. <br /> Unless said operating grant is received before December 31, 2017, the Decatur Public Transit System Fund will end the City of <br /> Decatur 2016 fiscal year with a negative cash position. <br /> Government Accounting Standards Board ("GASB") pronouncements require the Auditors in the fiscal period audit to cite the <br /> City with a negative audit finding in the event of such occurrence,regardless of the reason for the negative cash position. <br /> Council approval of the Interfund Cash advance, in the event required, will place the City in compliance of GASB audit <br /> requirements. <br /> If the operating grant is received prior to December 31,2017,the Interfund Cash Advance will not be affected. <br /> The projected amount of the Interfund Cash Advance is on the order of$2.0 million. The Interfund Cash Advance would be <br /> provided by the City of Decatur Water Operating Fund. <br /> POTENTIAL OBJECTIONS: There are no known objections to this request. <br /> INPUT FROM OTHER SOURCES: No input from other sources. <br /> STAFF REFERENCE: Tim Gleason,City Manager Gregg D.Zientara,City Treasurer&Director of Finance <br /> BUDGET/TIME IMPLICATIONS: None. <br /> ATTACHMENTS: <br /> Description Type <br /> Resolution Cup er Menlo <br /> https:Hdecatur.novusagenda.com/AgendaWeb/CoverSheet.aspx?ItemID=13 72 12/15/2017 <br />