jefferson welcomeA public hearing will be held next week for a $1 million loan for the City of Jefferson.

City Administrator Mike Palmer says state laws have changed to where the City can no longer borrow money from their general fund to pay for projects that would be reimbursed through tax increment financing. Now, they have to apply for a loan agreement to cover the costs of projects.

“We borrow on it when necessary, when a project comes up. We pay it back through our TIF dollars. Incidentally, any interest accrued is also reimbursed. So we’re not putting any kind of general fund tax money back in. It’s more of an accounting procedure to comply with the law.”

The projects include the City’s match of $250,000 toward the Community Development Block Grant for downtown revitalization, acquisition of real estate in the urban renewal plan, the remaining balance to the Department of Transportation for the Highway 4 overpass bridge and a storm sewer study for the north part of the City. If the agreement is approved, Palmer adds that they can put it out for bids to banks.

The public hearing is scheduled for Tuesday, January 24th at 5:30pm in the City Hall Council Chambers.