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Florence authorizes up to $10 million internal loan to jump-start transportation projects
Summary
Council approved a 10-year interfund loan of up to $10,000,000 at 3% to the new transportation sales tax fund to accelerate projects (including Hunt widening); staff said expected annual sales-tax revenues will begin July 1.
The Town of Florence approved a resolution authorizing an internal loan not to exceed $10 million from the general fund to the newly created transportation sales tax fund to accelerate road and transportation projects.
Carl (staff) reminded council that earlier action approved the sales-tax increase and that one percent of the new 1.5% tax would be dedicated to transportation; he said the town expects about $2.4 million a year to begin flowing to the fund. To start projects sooner, staff proposed a 10-year loan at 3% and an annual debt-service schedule to provide immediate capital for projects such as the Hunt widening. Council members supported the approach, noting that bonding or waiting to accumulate revenue would delay visible projects for years. One council member said the loan would allow the public works director to get projects underway quickly and that the public would see results sooner.
A motion to adopt Resolution 1990-26 passed on a voice vote; no roll-call tally was read in the transcript. Staff said details of the repayment and project allocation will follow and that road signs will note projects funded by the sales tax.
Council framed the move as a practical step to put shovel-ready plans in motion while sales-tax revenue ramps up.
