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Interfund loan payoff from wastewater to water fund gives temporary relief in Gervais budget
Summary
Staff noted a 2014 interfund loan of $220,000 between funds that had been nearly paid off by the end of the audit period, with only about $22,000 remaining; paying off that loan will provide limited, temporary fiscal relief.
Budget officer Rick Holmau told the committee that a 2014 interfund loan of $220,000 from the wastewater fund to the water fund had been reduced to roughly $22,000 by the end of the audited year and that FY25 work would pay off the remaining balance, providing short-term relief for the city's cash position.
Holmau described the loan as a planned financing mechanism used in past years to support capital needs and said its retirement will be one of several measures to manage the general fund deficit while longer-term reconciliation and budget corrections proceed.
