ADMINISTRATIVE REPORT
MEETING DATE: July 15, 2026 AGENDA CATEGORY: Consent - Miscellaneous TO: Honorable Mayor and City Council
FROM: Randy McKeegan, Finance Director
DATE: June 26, 2026
SUBJECT: Approval of an Interfund Loan Policy
[Document Description]
RECOMMENDATION:
Staff recommends Council approve Interfund Loan Policy
BACKGROUND:
In March 2026 the City Council entered into an agreement to execute a lease with an option to purchase property located at1440 Truxtun Avenue. In connection with the potential option to purchase the facility, staff presented the possibility to finance that purchase price internally via an interfund loan.
While the City Council has initiated interfund loans in the past, the City’s municipal financial advisors (Fieldman Rolapp) recommended an interfund loan policy be approved to align with best practices and to properly administer these types of financing options.
Interfund loans are the lending of cash from one City fund to another for a specific purpose and with a requirement for repayment. The practice of interfund lending is a recognized aspect of municipal finance and may be used to address temporary cash flow needs, finance capital projects, acquire assets, or support other approved governmental purposes. Interfund loans may be either short-term or long- term depending on the purpose and expected repayment period. All interfund loans must have a documented source of repayment and a reasonable expectation of repayment.
FISCAL IMPACT:
No direct fiscal impact, although the Policy will add controls and help ensure the timely repayment of interfund loans.
COUNCIL GOAL:
Innovative and Efficient City Government
ATTACHMENTS:
Interfund Loan Policy