R2024-372 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, 2024

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Financial Management DATE: 12/16/2024 MEMO: TO: Honorable Mayor Moore Wolfe and City Council Members FROM: Tim Gleason, City Manager Ruby F.James,City Treasurer&Chief Financial Officer 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 31,2024 SUMMARY RECOMMENDATION: City Administration recommends City Council approval of the attached Council Resolution to fund cash advances for those funds waiting on reimbursement from other sources. 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 31,2024. 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 31,2024. Community Grant Fund—Interfund cash advance of$70,000 may be necessary should Federal grant reimbursement funding not be received before December 31,2024. CDBG Fund—Interfund cash advance of$150,000 may be necessary should Federal grant reimbursement funding not be received before December 31,2024. Grants Fund— Interfund cash advance of$300,000 may be necessary should State grant reimbursement funding not be received before December 31,2024. HOME Fund—Interfund cash advance of$10,000 may be necessary should Federal grant reimbursement funding not be received before December 31,2024. Central TIF Fund—Interfund cash advance of$300,000 due to the timing of property tax payments into a newly created TIF that had demolition expenses, as reimbursement funding will be received before December 31,2024. Community Revitalization Fund—Interfund cash advance of$1,200,000 due to unanticipated demolition expenses over and above ARP monies, prior to final transfers of funds to cover the budget gap and reconciliation, which will not be received before December 31,2024. Public Mass Transit Fund—Interfund cash advance in an amount of$5,500,000 may be necessary should State IDOT and Federal operating grant funding not be received before December 31,2024. City Treasurer will affect interfund cash advances in such amount as is necessary to secure positive cash positions, in any and all funds affected. Interfund cash advance(s) will be repaid in full in 2025 at the beginning of the fiscal 2025 year, or at such time that the Fund(s) have sufficient monies to repay the interfund cash advance.