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Newton to accept $3M state-directed grant for City Lake Dam, reverses prior interfund loan
Summary
Finance Director Kim Robinson told council that $3 million in state-directed funding for City Lake Dam work makes an August 2023 interfund loan unnecessary; council adopted ordinances to reverse the loan and appropriate the directed grant funding.
The Newton City Council unanimously adopted a budget ordinance amendment to reverse a previously approved interfund loan of $1,185,800 and adopted a separate budget ordinance to accept a $3,000,000 state-directed grant for the City Lake Dam retaining wall and a water-main replacement project.
Finance Director Kim Robinson said the NC Appropriations Act of 2023 (House Bill 259) included $3 million for the city’s dam and water main projects, and that the funds will be issued on a reimbursement basis. Robinson said the period of performance for the directed grant is retroactive to July 1, 2023 and runs through June 30, 2028, and emphasized the city must expend or encumber all directed grant funds within that window.
Robinson told council that because the state funding eliminates the need to borrow internally for the dam work, staff recommended reversing the interfund loan previously approved on Ordinance 2023-53. Council approved both amendments unanimously.
The item included a discussion of project administration and reimbursement timing; staff indicated additional details and project ordinances will be filed with the City Clerk as part of standard capital project accounting.
