Sumner is transferring $450,000 from the sewer operating fund to the Local Improvement District (LID) development fund.
The transfer is to provide cash flow for the LID fund and for costs resulting from the Stewart Road Utility Local Improvement District.
Deputy City Administrator Diane Supler said the LID fund is a financing mechanism allowing property owners to develop or improve their land.
This particular project is to improve the sewer system for property owners in that area.
The project was supposed to be completed along with a road construction project, but the project was delayed and money is owed for land acquired and the design of the project.
The LID development fund was originally provided with a $300,000 loan from the sewer fund, but as the project is proceeding, it’s clear the amount is insufficient.
Council members passed the ordinance granting the loan during theire Dec. 1 meeting. The ordinance became effective five days later and brings the total amount of the loan to $750,000. The ordinance states the loan must be repaid by Dec. 31, 2010, along with a monthly interest rate paid by the Local Government Investment Pool. The investment pool is a collection of money from cities. The pool covers the lost investment opportunity due to the loan.
Reach Chaz Holmes at firstname.lastname@example.org or 360-802-8208.