Finance committee approves $8 million in bond-anticipation advances; staff stress repayment requirement

The Medina City Council Finance Committee approved advances of $3,000,000 and $5,000,000 between city funds using bond anticipation notes, with staff stressing the advances must be repaid.

City staff said the advances are structured as bond anticipation notes rather than transfers so the funds can be advanced now and repaid later once long-term financing is in place. Keith (staff member) told the committee, “It has to be repaid,” and explained the state auditor typically permits an advance only when a transfer would not be legal and the bond anticipation note memorializes that repayment obligation.

The committee approved the motion to authorize the advances after the explanation. The $3,000,000 advance is from the general fund to the general purpose capital fund, and the $5,000,000 advance is from the police special fund to court special projects, according to Keith.

Safety Director (name not specified) said city planning for future facilities informed the committee’s willingness to advance funds now, noting the city could later pull bonds to reimburse the police-related advance if a new police facility is authorized and financed through bonds.

Committee President (name not specified) called for the motion and the committee voted to approve. The minutes show the motion carried; no specific recorded no votes were announced during the exchange.

Next steps described by staff include treating the advances as temporary financing and repaying them in line with the bond anticipation note terms or from other identified sources once longer-term financing is secured.