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Urbana proposes $2 million interfund loan as IDOT seeks return of federal funds tied to Windsor Road; award at risk ~ $2.2M
Summary
Staff asked the committee to forward a $2,000,000 interfund loan from the retained risk fund to the motor fuel tax fund to pay bills while the city appeals IDOT/FHWA requests to return federal funds tied to Windsor Road pavement work; the committee voted to send the item to council.
City staff asked the Committee of the Whole to forward Resolution 202409061R authorizing a $2,000,000 interfund loan from the retained risk fund to the motor fuel tax (MFT) fund to allow the city to pay outstanding invoices while it appeals an IDOT and Federal Highway Administration action related to the Windsor Road project.
Staff said IDOT has taken the position that pavement work on Windsor Road was not acceptably constructed and, as a result, has asked the city to return federal funds that IDOT says should be returned to the federal government; the sum IDOT referenced exceeds $500,000. Staff said the wider federal award at stake for Windsor Road is roughly $2,200,000. The proposed $2 million loan would free up unencumbered funds to pay ongoing work and would be repaid from MFT funds once the IDOT/FHWA issue is resolved.
Council asked clarifying questions about which MFT monies were affected and whether the loan would be interest free; staff said the loan would be short term and interest free, intended to bridge active contracts that otherwise could be paused. Mary Alice moved—and Grace seconded—to forward the resolution to the City Council consent agenda; the motion passed by voice vote among those present.
