R2020-181 Resolution Authorizing the City of Decatur to Provide an Interfund Cash Advance to Certain Funds to Affect a Positive Cash Position as of the Close of Business as of December 31, 2020

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LETTER to the DECATUR CITY COUNCIL Finance Department DATE: December 16, 2020 TO: Honorable Mayor Moore Wolfe and City Council Members FROM: Scot Wrighton, City Manager Gregg D. Zientara, City Treasurer&Director of Finance SUBJECT: Resolution Authorizing the City of Decatur to Provide an Interfund Cash Advance to Certain Funds to Affect a Positive Cash Position as of the Close of Business as of December 31, 2020 SUMMARY RECOMMENDATION: City Administration recommends City Council approval of the attached Council Resolution. BACKGROUND: Funds of the City must have monies in an amount to affect a positive cash position as of the end of the fiscal year, in accordance with ordinance and state statute. Certain city funds may be in a position due to unforeseen circumstances to not have a positive cash position as of December 31, 2020. Therefore, it is necessary for the City of Decatur to provide an interfund cash advance to these certain funds,to affect a positive cash position as of December 31, 2020. CDBG Fund — Interfund cash advance in an amount of$500,000 may be necessary in the event that Federal approval and subsequent receipt of the CDBG funding is not received before December 31, 2020. Public Mass Transit Fund— Interfund cash advance in an amount of$500,000 may be necessary in the event that State IDOT operating grant funding is not received before December 31, 2020. Grant Fund — Interfund cash advance is an amount of $500,000 may be necessary in the event that State CURES grant funding is not received before December 31, 2020. City Treasurer will affect interfund cash advances in such amount as is necessary to secure positive cash positions. Interfund cash advance(s) will be repaid in full in 2021 at such time that the Fund(s) have sufficient monies to repay the interfund cash advance. Page 1 of 2