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Curry County authorizes counsel to draft short-term loan to avert winter transit cuts
Summary
The Board of Commissioners voted to authorize county counsel to draft a contract providing short-term funds to Curry Public Transit to avoid service reductions this winter; commissioners discussed repayment terms and possible interest if funds are not repaid by a set date.
The Curry County Board of Commissioners voted Sept. 16 to authorize county counsel to work with the county transportation committee to draft a contract that would provide short-term funding to Curry Public Transit so the agency does not have to cut services this winter.
Commissioner Coker said the county could provide a deferred payment that would allow the transit agency to keep services running and prevent two employees from having their salaries reduced by 75 percent. “This would be a deferred payment that would be a very essentially, a short term loan,” Coker said during discussion.
The board discussed contract terms, including an incentive to repay on schedule. Commissioner Hollinger said it would be appropriate to include language that if the loan is not paid back by a specified date, interest would begin to accrue. “If not paid back in full by such date, then interest will be accrued going forward,” Hollinger said.
After discussion, a motion was made to authorize county counsel to begin drafting the short-term funding contract and to work with the transportation committee on the terms. The motion passed on a roll call: Commissioner Coker — aye; Commissioner Hollinger — yes; Commissioner Olinger — yes.
Why it matters: County officials said Curry Public Transit expects a roughly $109,000 reduction in anticipated grant funds in the spring. Commissioners described the county contribution as temporary and said the transit agency expects to repay the funds when the deferred grant is received, and that a formal contract will define repayment deadlines and any interest.
Details and next steps: The board directed county counsel to begin contract work; the board did not adopt a final loan amount or repayment schedule at the Sept. 16 meeting. Commissioners suggested including a low interest rate or interest trigger if repayment is delayed. Staff indicated the draft contract will return for further review before the county disburses funds.
The board’s action was limited to authorizing counsel to draft the agreement; no funds were transferred at the meeting. The county will return to the board for final approval of any loan or contribution and the exact repayment terms.
