HomeMy WebLinkAboutRES 1992-39 - Board RESOLUT.10N .NO.. 9239
OF THE
TRUCKEE DONNER PUBLIC UTILITY DISTRICT
ESTABLISHING AN INTERFUND LOAN POLICY
WHEREAS, the Truckee Donner Public Utility District's accounting system is maintained
in such a way as to separate the financial activities of the Electric Department from the
Water Department; and
WHEREAS, for some time the Water Department has not had sufficient cash flow to pay
all of its monthly operating expenses and has had to borrow money from the Electric
Department; and
WHEREAS, in February of 1991, the District increased the water rates in order to cover
the cash flow requirements of the Water Department and anticipates that it will take some
time to make up the accumulated cash flow deficiency in the Water Department, and
WHEREAS, the Electric Department has been charging the Water Department interest
on the amount owed by the Water Department at the average rate of interest paid by the
Local Agency Investment Fund, and
WHEREAS, from time to time one department may have short term borrowing needs and
the other department may have surplus funds available in either the department general
fund or self imposed restricted funds; and
WHEREAS, the Board wishes to formalize interfund loan activity by authorizing a
procedure for staff to follow in allocating monthly general fund deficit interest charges;and
WHEREAS, due to the relationship of the interest rate that the District receives on its
investments and what it would have to pay for financing, the Board may from time to time
find that it is prudent for one department to borrow from the other or from self imposed
restricted funds to meet its financing requirement;
NOW, THEREFORE, BE/T RESOLVED by the Board of Directors of the Truckee Donner
Public Utility District as follows:
1. At the end of each accounting month, staff is authorized to charge the Water
Department interest for its general fund deficits at the average interest rate earned
on District investments.
2. From time to time, when there are short term borrowing needs by either
department, staff will consider presenting to the Board borrowing alternatives which
may include borrowing from the other department or from self-imposed restricted
funds that will not be needed immediately.
3. When the Board determines that an interfund loan or an intrafund loan is prudent,
the interest rate that will be charged will be the average interest rate earned on
District investments.
4. Staff will review this policy on an annual basis and make recommendations for
amendment to the Board when necessary.
PASSED AND ADOPTED by the Board of Directors at a meeting duly called and held
within the District on the 2nd day of November 1992 by the following roll call vote:
AYES: Corbett, Curran, Maass and Aguera.
NOES: None.
ABSENT. Sutton.
TRUCKEE DONNER PUBLIC UTILITY DISTRICT
B y ry
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Joseph'R.
Aguera,;resident
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ATTE
Susan M. Craig, Deputy Dis ict Clerk
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