"We had projected a reserve of about
Under the ordinance to be introduced Tuesday, council would establish the revolving loan fund and authorize Roller to borrow money without interest in order to "continue to provide governmental services without interruption due to the delays in the receipt of funds or decreases in the amount of funds to the city (and to) provide flexibility."
The loans would have to be repaid within the program's five-year lifespan unless they are forgiven by council. Roller would also be required to give council a report every three months on the status of any loans.
"It would be like a rainy day fund. I would only draw on it as needed, and would work to repay any loans as quickly as possible. My goal would be not to use it, but it would be there if I need it," Roller said, adding that she would like to establish a cash reserve of at least
Being able to borrow the money would allow the city to pay unanticipated expenses quickly, since bills submitted to council for approval can takes weeks to process.
"It could be used in times of emergency or drastic (budget) shortfalls, but it was never intended as a 'backstop' for daily operations," Smith said. "All appropriations (from Legacy) should be approved by council. I see Legacy as a true community treasure. If we approve these 'one-offs,' they'll keep coming."
Roller said she would not use the loan pool to pay daily expenses such as salaries, but to meet unanticipated bills. The program could save the expense of borrowing from outside sources, she said.
Also Tuesday, council will be asked to allow Legacy funds to provide the required backing for the
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