R2016-145 Interfund Cash Advance to Decatur Public Transit System Fund

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Item Coversheet Page 1 of 1 in Financial Management DATE: 12/14/2016 MEMO: 2016-29 TO: Honorable Mayor Moore Wolfe and City Council Members FROM: Tim Gleason,City Manager Gregg D.Zientara,City Treasurer&Director of Finance SUBJECT: Resolution Authorizing the City of Decatur to provide an Interfund Cash Advance the Decatur Public Transit System Fund in sufficient amount to affect a positive cash position at the close of business as of December 31,2016 for the purpose of funding the Transit payroll and other operating expenses until such time that the Transit System Fund receives the State of Illinois Department of Transportation I"and 2"d quarter operating grants and the Interfund Cash Advance is repaid in full to the City of Decatur SUMMARY RECOMMENDATION: City Administration recommends City Council approval of the attached Council Resolution. BACKGROUND: The City of Decatur Public Transit is primarily funded through operating grants received from the State of Illinois Department of Transportation. The Council Resolution herewith is requested for approval as a precautionary measure in the event that the City of Decatur Public Transit System does not receive the State of Illinois Department of Transportation lst and 2"d Quarter operating grants,which is on file with the State of Illinois and pending disbursement. Unless said operating grant is received before December 31, 2016, the Decatur Public Transit System Fund will end the City of Decatur 2016 fiscal year with a negative cash position. Government Accounting Standards Board("GASB")pronouncements require the Auditors in the fiscal period audit to site the City with a negative audit finding in the event of such occurrence,regardless of the reason for the negative cash position. Council approval of the Interfund Cash advance, in the event required, will place the City in compliance of GASB audit requirements. If the operating grant is received prior to December 31,2016,the Interfund Cash Advance will not be affected. The projected amount of the Interfund Cash Advance is on the order of$0.5 million to$1.6 million.The Interfund Cash Advance would be provided by the City of Decatur Water Operating Fund. POTENTIAL OBJECTIONS: None. INPUT FROM OTHER SOURCES: None. STAFF REFERENCE: Tim Gleason,City Manager Gregg D.Zientara,City Treasurer&Director of Finance BUDGET/TIME IMPLICATIONS: None ATTACHMENTS: Description Type Resolution Resolution Letter https:Hdecatur.novusagenda.com/AgendaWeb/CoverSheet.aspx?ItemID=979 12/19/2016