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5. Short-Term Financing/Capital Lease Debt <br /> 5.1. Payment using cash-on-hand is the preferred method of financing vehicle, equipment, <br /> and rolling stock purchases. However, short-term or capital lease debt may be <br /> considered to finance these acquisitions when determined to be economically <br /> advantageous based on a cost-benefit comparison with upfront cash outlay. <br /> 5.2. When undertaking short-term financing or capital leasing, the Finance Department, in <br /> cooperation with the requesting department, will solicit competitive or negotiated <br /> proposals to ensure the lowest possible interest costs. <br /> 5.3. The term of short-term financing will be limited to the expected useful life of the asset. <br /> 6. Interfund Loans <br /> 6.1. The City Treasurer, under authority of Resolution#2927, may establish short-term <br /> interfund loans to maintain solvency of all City funds. <br /> 6.2. Interfund loans with fixed repayment schedules may be made with terms extending <br /> beyond one year with the approval of City Council. <br /> 6.3. The City Treasurer will charge a variable interest rate on all interfund loans equal to <br /> the monthly yield on the City's investment portfolio, such that the loaning fund <br /> experiences no adverse economic impact from the transaction. <br /> / k • <br /> Councilperson Introducing Resolution <br /> Passed and Approved this 17th day of January , 2007. <br /> Cecil Presid-n <br />