71 F
Spring Hill
HomeUncategorizedInterfund Loans to Ease Shortages

Interfund Loans to Ease Shortages

- Advertisement -

Budget Director Stephanie Russ introduced the policy revision (No. 29-01) that allows for Interfund Loans.  Put simply, a budget fund with a shortage could borrow from another fund. Such a policy will prevent the necessity to secure external loans, which are accompanied by interest and fees.   This has been common practice, however an official policy has never been written. This policy was approved by the board unanimously.

In a separate but related agenda item, Russ presented to the board a temporary interfund loan from the Utilities department to the General fund for the term of August 2019 through December 2019. Russ estimates that approximately $3-4 million will be needed in the General Fund by the end of September, however the number could be lower or up to $5 million.  The current short-term loan rate will be 3.0%.

The board approved unanimously, and the topic is expected to be discussed again at the September 11, 2019 Budget meeting.

Lisa MacNeil
Lisa MacNeil
Lisa MacNeil is a reporter for the Hernando Sun as well as a business technology developer, specializing in website development, content management systems, and data analysis.
- Advertisment -

Most Popular