HomeMy WebLinkAboutReso 134-1991RESOLUTION NO. 134-91
CITY COUNCIL, CITY OF SOUTH SAN FRANCISCO, STATE OF CALIFORNIA
A RESOLUTION OF THE SOUTH SAN FRANCISCO
CITY COUNCIL ESTABLISHING A POLICY
REGARDING INTEREST RATES ON INTERFUND
LOANS
WHEREAS, it becomes necessary from time to time to transfer
money between City and/or City Agency funds; and
WHEREAS, such transfers often take the form of short term
loans; and
WHEREAS, interfund loans are beneficial to the City and/or
Agency as they are easily accomplished with little or no overhead
costs and at an interest rate below market rate; and
WHEREAS, there is a need to establish a consistent policy on
the amount of interest charged for the subject interfund loans.
NOW, THEREFORE, the City Council of the City of South San
Francisco resolves as follows:
When a loan is made between two funds under the control of the
City Council, the rate of interest charged shall be equal to the
rate of investment earnings applied semi-annually to the various
funds of the City, based upon the average outstanding balance
during the calculation period. Interest charges will be applied
semi-annually.
I hereby certify that the foregoing Resolution was regularly
introduced and adopted by the City Council of the City of South San
Francisco at a re§u]ar meeting held on the 13th day of
November , 1991 by the following vote:
AYES:
Councilmembers Richard A. Haffey, Gus Nicolopulos, John R. Penna,
Roberta Cerri Teglia, and Mayor Jack Drago
NOES: None
ABSTAIN: None
ABSENT: None
city Clerk