City to front costs with interfund loan for $125,000 DASNY parks grant; reimbursement expected in summer 2025

City staff asked council members to approve an interfund loan to allow the city to pay upfront for infrastructure improvements at Hennepin Park that are covered by a Dormitory Authority of the State of New York (DASNY) grant.

A staff member said the city was awarded a DASNY grant for about $125,000 to pay for park infrastructure work at Hennepin and that, under the grant terms, the city will incur costs up front and then be reimbursed. Staff estimated reimbursement around August 2025.

Why it matters: The request affects the city's cash‑flow planning. During the briefing, a council member noted that approving the interfund loan would leave approximately $1,715,934 in the interfund holding account that is available to the administration. Staff and council members discussed the city’s interfund loan (IFL) cap, which staff said is $18,000,000, and an internal practice that items approaching $1,000,000 receive closer review by the controller’s office.

Public Works staff told the council that the interfund holding account can absorb the $125,000 request and that Public Works can begin work once the loan is approved so the city can meet grant reimbursement timing.

Action and next steps: The pre‑meeting agenda mapping indicated item 15 (the interfund loan / DASNY grant reimbursement request) will be approved under public works at the council meeting. Staff said they will submit documentation to the controller’s office for the interfund loan and schedule project work to align with the anticipated DASNY reimbursement.

Ending: Council members asked staff to continue coordinating with the controller’s office on IFL cap monitoring and to update members when the reimbursement is received.