R2008-219 AUTHORIZING THE CITY MANAGER TO BORROW FUNDS FROM LOCAL BANKS

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FINANCIAL MANAGEMENT DEPARTMENT #2008- 101 DATE: November 13, 2008 TO: Honorable Mayor Michael T. Carrigan and City Council . FROM: Ryan P. McCrady, City Manager Ron Neufeld, Finance Director SUBJECT: Authority to Borrow Funds for Mass Transit SUMMARY RECOMMENDATION: It is recommended by staff that the City Council approve the attached resolution, which authorizes City Manager and Finance Director to borrow up to $1,500,000 to make up the shortfall resulting from late payment of State funds for Mass Transit operations. BACKGROUND: On October 29, 2008 the City Council was advised that the City of Decatur had sent the , Illinois Department of Transportation a reimbursement request for $1,589,432 and that it had not been received. As of today we have yet to receive the funds even though they would have normally been received in October. The letter we received from IDOT indicated that we would most likely continue to experience delays in funding. If we do not receive the above funds by the end of this month we will not have enough funds to operate the Mass Transit system. In case that should happen we are requesting authority from the City Council to borrow up to $1,500,000 from one of the local banks we are authorized to do business with and when the funds are received from the State, the loan would be repaid. POTENTIAL OBJECTION: There are no known objections to this resolution. INPUT FROM OTHER SOURCES: Ann Schneider, Director of Finance and Administration, IDOT STAFF REFERENCES: Ron Neufeld, Finance Director- 450-2226 Paul McChancy, Mass Transit Administrator 424-2820