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Council hears proposal to reamortize 1998 USDA LID loan totaling $152,227.25
Summary
Council discussed a USDA Local Improvement District (LID) loan from 1998 for which the city owes $152,227.25. USDA proposed reamortizing the loan to payments of $24,000 each March for eight years; the City Attorney will review options.
City officials told the council that Harrison currently owes the U.S. Department of Agriculture $152,227.25 on a 1998 Local Improvement District (LID) loan. The minutes state: "The city currently owes the USDA $152,227.25."
The recorded annual payment on the account is $54,854, but the city’s collected revenue is insufficient because a 1998 decision exempted certain properties from LID costs. USDA has proposed reamortizing the loan so the city would pay $24,000 each March for the next eight years, contingent on city agreement. The City Attorney was tasked with reviewing the city’s legal and financial options.
Council did not take an immediate vote on the repayment proposal at this meeting; the matter was discussed to clarify the debt amount, the shortfall in collections, and the proposed repayment schedule.
