The Metropolitan Council on April 20 authorized an internal loan to cover a short-term cash-flow gap in the Environmental Services capital fund until proceeds from the council's 2025 bond issuance become available on May 1, 2025.

Council Member Ruth Johnson, who presented the item during the management committee report, said the gap is the result of a $10,800,000 project that could not use a planned Public Facilities Authority loan after a 2023 state bonding bill did not pass as expected. "This approval is not authorizing any new capital spending, it doesn't change the budget, it is strictly for cash flow," Johnson said.

The council's finance and asset management policy FM 2‑2 allows short-term, inter-unit loans to meet temporary cash needs, but requires council approval when a negative fund balance lasts more than three months or exceeds $10,000,000. The presentation to the council said the environmental services capital bond funding became exhausted in March 2025 because that unplanned $10.8 million project shifted to bond funding, and the council's next bond proceeds are not available until May 1.

Funding for the internal loan will come from the council's general investment pool; interest will be charged while the loan is outstanding. Chair Charley Zelle described the move as a short-term financing step and said, "I believe in just‑in‑time financing." The council approved the item without recorded roll-call tallies in the meeting minutes.

Why it matters: the internal loan avoids interrupting capital work already underway while preserving the council's long-range capital plans. Council leaders emphasized the item does not increase authorized capital spending or change any project budgets — it only provides temporary cash until bond proceeds arrive.

Details recorded in the meeting: the project that triggered the shift from PFA loan to bond funding was described as $10,800,000; the council cited the FM 2‑2 threshold of $10,000,000; new bond proceeds were scheduled to be available May 1, 2025. The council meeting record does not include a roll-call vote tally for this item in the transcript provided.

Next steps: staff will execute the internal loan transaction and charge interest according to the council's policy, then repay the loan when the 2025 bond proceeds are received.