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Council hears proposal to reamortize USDA 1998 LID loan amid collection shortfall
Summary
City staff told the council it owes the USDA $152,227.25 on a 1998 LID loan; USDA proposed reamortizing payments to $24,000 each March for eight years to ease annual budget pressure, and the City Attorney will review options.
City staff reported the Harrison LID loan originating in 1998 currently carries a balance of $152,227.25 and an annual payment of $54,854. Staff explained that the city’s collections fall short because a 1998 decision exempted certain properties from LID costs, and USDA has proposed reamortizing the loan so the city would pay $24,000 each March for the next eight years if the city agrees.
The minutes record the dollar amounts and the proposed reamortization but do not record a council vote on the proposal; the City Attorney, Andy Doman, is expected to review the city’s legal and financial options before any decision. The minutes do not list which properties are exempted by the 1998 decision or whether property owners will be re-billed.
