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Board renews resolution permitting temporary interfund borrowing in emergencies
Summary
Board approved the annual resolution allowing temporary, intra‑year borrowing between restricted funds and the general fund for short‑term cash needs; staff emphasized it is a short‑term measure rarely used.
The board considered and approved the routine resolution that authorizes temporary transfers between district funds — for example, borrowing from cafeteria or capital facilities funds to cover a temporary general fund cash shortfall during the fiscal year. Staff emphasized that such borrowing is limited to a portion of the fund, must be repaid within the fiscal year and is intended as an emergency liquidity measure; they noted the district has not needed to use it in at least eight years.
A committee member asked what would happen if the district were 'pinched' financially; staff reiterated that the resolution protects the district in a narrow emergency scenario but that use would require board approval and repayment within the fiscal year. The motion passed on roll call.
