Chapter 3.60


3.60.010    Interfund loan authority.

3.60.020    Interest.

3.60.010 Interfund loan authority.

A. The finance director, after consulting with the city manager, is authorized to make interfund loans from one City fund to another City fund for periods not exceeding three months.

B. Each interfund loan shall be documented with a financial plan reflecting a repayment schedule. The financial plan shall also reflect that the loaning fund will have adequate cash balances to continue to meet current expenses payable from the fund after the loan is made and until repayment thereof and that the loan is necessary to enable the receiving fund to meet current expenses payable from the receiving funds.

C. Appropriate accounting records shall be maintained to reflect the balances of loans in every fund affected by such transaction.

D. Any extension of an interfund loan beyond the three-month period shall required city council approval by resolution.

E. The finance director shall include the status of any interfund loan in his or her monthly financial report to the city council. [Ord. 07-0269 § 1.]

3.60.020 Interest.

Interfund loans authorized under KMC 3.60.010 shall be without interest unless interest is required by law, in which case the finance director shall designate the appropriate rate based the current investment earning rates of City investments. [07-0269 § 1.]