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LETTER to the DECATUR CITY COUNCIL <br /> Finance Department <br /> DATE: December 18, 2023 <br /> TO: Honorable Mayor Moore Wolfe and City Council Members <br /> FROM: Scot Wrighton, City Manager <br /> Ruby F. James, City Treasurer&Chief Financial Officer <br /> SUBJECT: Resolution Authorizing the City of Decatur to Provide an Interfund Cash Advance <br /> to Certain Funds to Affect a Positive Cash Position as of the Close of Business as <br /> of December 31, 2023 <br /> SUMMARY RECOMMENDATION: <br /> City Administration recommends City Council approval of the attached Council Resolution to fund <br /> cash advances for those funds waiting on reimbursement from other sources. <br /> BACKGROUND: <br /> Funds of the City must have monies in an amount to affect a positive cash position as of the <br /> end of the fiscal year, in accordance with ordinance and state statute. Certain city funds may be <br /> in a position due to unforeseen circumstances to not have a positive cash position as of December <br /> 31, 2023. <br /> Therefore, it is necessary for the City of Decatur to provide an interfund cash advance to these <br /> certain funds, to affect a positive cash position as of December 31, 2023. <br /> Community Grant Fund — Interfund cash advance of $25,000 may be necessary should Federal <br /> grant reimbursement funding not be received before December 31, 2023. <br /> CDBG Fund — Interfund cash advance of $200,000 may be necessary should Federal grant <br /> reimbursement funding not be received before December 31, 2023. <br /> 2018 Bond Fund — Interfund cash advance of no more $482,509 than to pay for final close out of <br /> the new fire stations,the project being over budget. This was already approved as part of a budget <br /> amendment in June of FY2023. <br /> Insurance Fund — Interfund cash transfer of unspent pay and benefit amounts from the General <br /> Fund in excess of the 90-day reserve in order to build up cash balance to maintain a$2 million fund <br /> balance per best practice to cover large insurance claims in any given year, as the City is self- <br /> insured. <br /> Capital Projects Fund—Interfund cash transfer of$2 million dollars from the General Fund's special <br /> projects reserve in FY2023, the expense being budgeted in FY2024 in Capital Projects Fund. <br /> Recycling Fund—Interfund cash advance in the amount of$300,000 due to higher than budgeted <br /> disposal fees. <br /> Page 1 of 2 <br />