Council authorizes borrowing authorization tied to $239,824 federal traffic safety study; staff explain reimbursement and cash-flow risk
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Summary
Council reviewed and then approved authorization allowing the city to finance planning for a federally funded traffic safety study (maximum $239,824). City controller explained reimbursements are paid on a reimbursement basis and staff may use internal cash advances or short-term borrowing depending on timing.
An ordinance authorizing financing up to $239,824 to plan citywide traffic safety improvements was the subject of a public hearing and council discussion on Oct. 21.
City staff told the council the grant supporting the study is federal and reimbursement-based, meaning the city must advance costs and then apply for reimbursement. The controller warned that timing could require temporary use of the general fund or short-term borrowing; she said the city might avoid issuing debt if reimbursements proceed quickly but recommended the authorization so a tax-exempt short-term borrowing option would be available if the project timeline required it.
Tyler Huffman and Patty Bourne were identified as staff present to answer technical questions about the study. The study is expected to identify the city's most dangerous intersections and deliver a final report in April 2026; staff said the city would pursue implementation grants for remedies when funding windows reopen in May 2026.
Council members asked whether the city had already accepted the grant and whether the ordinance should explicitly accept the grant in addition to authorizing borrowing. Staff advised an amendment could be prepared if needed, and the controller explained that carrying costs depend on how long the city needs to carry the cost prior to reimbursement: "it really depends on how fast we're going to be getting the reimbursements," she said, noting that if work starts immediately the ordinance might never be used for borrowing.
The council approved the ordinance as part of a block vote (items 1, 2 and 5–9 were approved together). No implementation grants were authorized at the meeting; staff said the study would be followed by community engagement and a consultant selection process.