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Committee recommends council reimburse internal funds for wastewater upgrade with Clean Water Fund loan proceeds
Summary
The committee reviewed an IRS-related reimbursement requirement and recommended the council approve repaying internal funds used to pay Wastewater Treatment Facility Upgrade expenses with proceeds from the Clean Water Fund Program Loan.
On Aug. 26 the Joint Committee of the Whole reviewed the city's plan to reimburse internal funds used for Wastewater Treatment Facility Upgrade costs with proceeds from a Clean Water Fund Program Loan and recommended the City Council approve the reimbursement.
Committee members discussed an IRS requirement that allows expenses to be incurred before receipt of loan proceeds so long as the city later reimburses itself from the loan. Council member VanderHeiden moved to recommend repayment from loan proceeds; Krull seconded and the motion carried.
Why it matters: Using loan proceeds to reimburse earlier city-paid project expenses preserves the city's internal cash flow and aligns accounting with federal/state loan requirements. The committee voted to recommend the council approve the reimbursement; the council must take final action.
