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Highland Council authorizes $1.763 million in temporary interfund loans to cover bond payments
Summary
The Town Council approved Resolution 2026-02 authorizing temporary interfund loans totaling $1,763,000 to cover bond-and-interest payments across four funds; loans are to be repaid by Dec. 31, 2026, and carried by municipal capital or ED-LIT funds.
Highland — The Town Council on Jan. 12 adopted Resolution No. 2026-02 authorizing temporary interfund loans totaling $1,763,000 to shore up bond-and-interest funds until the semiannual property-tax distributions arrive.
The loans are designated as follows: $680,000 for the Sanitary District Bond & Interest Fund (loaned from the Municipal Cumulative Capital Development Fund); $640,000 for the Park District Bond & Interest Fund (loaned from the Economic Development Local Income Tax fund); $245,000 for the Corporation Bond & Interest Fund (also from the ED-LIT fund); and $198,000 for the Waterworks District Bond & Interest Fund (from the Cumulative Capital Development Fund). The council’s resolution requires repayment no later than Dec. 31, 2026, subject to state law.
Clerk-Treasurer Mark Herak presented the transfers as temporary cash-management actions necessary because year-start bond payments precede the semiannual ad-valorem distributions. The resolution also invoked the municipal code provision that allows such temporary transfers without accrued interest under specified conditions.
Council President George Georgeff presided; the measure passed on a 4-0 roll call vote.
The transfers are bookkeeping transactions intended to prevent missed debt-service payments; the resolution directs the Clerk-Treasurer to return funds when tax receipts permit. The council did not authorize any new debt or change repayment terms beyond the Dec. 31, 2026 repayment date noted in the resolution.
