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Spencer to seek short-term note up to $451,000 to close out completed SRTS sidewalk project as reimbursements lag
Summary
After construction finished on the Safe Routes to School sidewalk, the council authorized pursuing a short-term Capital Outlay Note not to exceed $451,000 to pay project invoices while two reimbursements remain outstanding, with the city planning to retire the note when reimbursements arrive.
City representatives told the Spencer City Council on Sept. 25 that the Safe Routes to School (SRTS) sidewalk construction is complete but two reimbursements remain outstanding. Attorney James C. Hailey and representative Zeda Hillis recommended the city obtain short-term financing to cover final project costs until reimbursements are received.
Alderman David Chandler moved that the city seek a short-term Capital Outlay Note not to exceed $451,000 to pay off the sidewalk project. Vice Mayor Drew Campbell seconded; the motion passed on a unanimous roll call.
Council members asked whether six months would be sufficient to await reimbursements; the board was told six months should be adequate. The council did not specify loan terms in the meeting; staff and the city attorney will pursue the note and bring back financing details for final approval.
The action authorizes staff to move forward with short-term borrowing to address timing gaps between project expenditures and external reimbursements.
