#CentralCity councillors approve 2020 budget

Central City back in the day

From The Mountain Ear (Patrice LeBlanc):

The council looked over Resolution No. 19-32: A resolution approving a General Fund purchase of Development Fee Credits from the Water Enterprise Fund for issuance to a City Economic Development Incentive Program. The City loaned funds over a number of years from the General Fund to the Water Fund for operational and capitol expenses.

The current fiscal year end balance on the loan is $819, 205. The City intends to establish a program that can provide economic incentives to the development projects.

City Manager Daniel Miera explained the process to the Council. The payback plan will change from 20 years to 11 years. Mayor Fey asked Miera if the City is forgiving the balance of the loan from the Water Fund. Miera replied that the Water Fund will still be owed to the City, but it will come in a different form.

Alderman Aiken wanted to know if the City charges interest on the loan, and Miera reported that no interest was charged. Alderman Hidahl thought this was a creative solution and an advantage for the City to encourage development. Mayor Fey agreed and felt the incentive program should be used for the core of the city rather than exterior development. The Resolution passed 5-0…

Miera was asked if the water budget was too high. [Daniel Miera] responded the budget shows a positive operating fund, for which the city has been striving for many years. It has been in the negative in years’ past.

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