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LETTER to the DECATUR CITY COUNCIL <br /> Financial Management Department <br /> #2018-17 <br /> DATE: December 11, 2018 <br /> TO: Honorable Mayor Moore Wolfe and City Council Members <br /> FROM: Billy Tyus, 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 <br /> to the Decatur Public Transit 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 funded through operating grants received from the State of <br /> Illinois Department of Transportation and the Federal Department of Transportation. <br /> The Council Resolution herewith is requested for approval as a precautionary measure in the <br /> event that the City of Decatur Public Transit System does not receive the Federal Department of <br /> Transportation operating grant for the federal fiscal year ending October 31, 2018,which is on file <br /> with the Federal Department of Transportation, pending approval and disbursement. <br /> Unless said operating grant is received before December 31, 2018, the Decatur Public Transit <br /> System Fund will end the City of Decatur 2018 fiscal year with a negative cash position. <br /> Government Accounting Standards Board ("GASB") pronouncements require the Auditors in the <br /> fiscal period audit to site the City with a negative audit finding in the event of such occurrence, <br /> 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 <br /> compliance of GASB audit requirements. <br /> If the operating grant is received prior to December 31, 2018, the Interfund Cash Advance will not <br /> be affected. It is unlikely that the City of Decatur will receive the Federal Operating Grant before <br /> December 31, 2018. <br /> The projected amount of the Interfund Cash Advance is on the order of$1.5 to$1.6 million. <br /> POTENTIAL OBJECTION: <br /> There are no known objections to this resolution request. <br /> Page 1 of 2 <br />