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Van Buren Quorum Court OKs $300,000 line of credit to finish Baker Lake Road mitigation
Summary
The Quorum Court authorized the county judge to sign a $300,000 line of credit with First Service Bank of Clinton to bridge upfront costs for mitigation work on Baker Lake Road; the county said a $300,000 reimbursement grant will repay the loan.
The Quorum Court of Van Buren County on a unanimous roll-call vote approved Ordinance O 202413, authorizing the county judge to execute a $300,000 line-of-credit agreement with First Service Bank of Clinton to cover mitigation work on Baker Lake Road.
County Judge (name not provided in the transcript) told the court the line of credit is intended as a short-term bridge because the county must incur project costs up front and will be reimbursed later. "It's a reimbursement grant, so we have to incur the expense upfront and then get the reimbursement on the backside," the county judge said. "It's a wash." The judge said the immediate project—replacing a series of culverts with a bridge—is expected to cost about $200,000.
The ordinance text states the county has already been approved for a $300,000 reimbursement grant that will fund payoff of the line of credit once received. The ordinance grants the county judge authority to sign for a $300,000 line of credit, to create an installment loan with First Service Bank, and specifies that standard interest rates will apply and the line shall be paid and closed upon receipt of grant funds.
A court member asked whether the county judge would need to seek court approval for purchases above a certain amount. The county judge replied that, in the case of this credit bridging a reimbursement grant, it would not necessarily require prior court approval and described the transaction as a bridge for project expenses.
The court recorded a roll-call vote with the following members voting yes: Holcomb, Nikki, Sarah, Phillips, Mike, John, Paige, Lemmings and Bass. The ordinance was recorded as O 202413 and approved.
Fiscal and procedural details in the ordinance include the stated reimbursement grant amount ($300,000) and that the line of credit will be appropriated into line item 2000-0200-9999 (transfers out). The ordinance notes that the county judge has authority to make purchases and to create an installment loan with First Service Bank; standard interest rates will apply and the line will be paid in full and closed upon receipt of the grant funds.
Next steps: with the ordinance adopted, the county judge is authorized to finalize the loan agreement and proceed with the mitigation work pending receipt of the reimbursement funds.
