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Bel-Nor officials back partial immediate repayment of interfund balances but take no vote
Summary
City administrators discussed repaying internal "Due To" interfund borrowings used in prior years; City Attorney Stephanie advised repayment is prudent though not statutorily required, and the board generally favored "Option B" to repay a substantial portion immediately while preserving reserves.
City Administrator Rachel St. Pierre told the Bel-Nor Board of Aldermen on March 18 that in prior years the city moved funds internally to support general operations during financially difficult periods. The matter under discussion concerned repayment of outstanding "Due To" balances between city funds, including sewer lateral and interfund transfers.
City Attorney Stephanie advised that interfund borrowing has historically been used by municipalities under financial strain, that repayment of those balances is appropriate and advisable, and that there is no immediate statutory deadline requiring instant repayment. She added that restoring the funds now that the city is healthy would likely be viewed favorably by auditors and is considered a responsible corrective step.
Board members generally expressed support for "Option B," described during the session as an approach that would repay a substantial portion immediately while preserving reserves and completing the remainder over time. No final vote was taken; staff was tasked with returning with implementation details and a repayment schedule for future board consideration.
City Attorney Stephanie departed at approximately 5:20 PM for a prior commitment and Alderman Mike Capstick left shortly thereafter; the remaining members continued with planning and budgeting priorities.
