The City Council will loan Galt’s redevelopment successor agency a quarter of a million dollars under an official agreement approved Tuesday.
The $257,814 is expected to be repaid with future property taxes. The money for the loan, approved in July, came from the city’s General Fund and will accrue no interest before its anticipated June 2013 pay-off date.
It was necessary after the county assessor’s office made what the city believes is a billing error, according to city manager Jason Behrmann.
“This is the best way to make sure we get paid those funds,” he said of the loan.
The loan itself was actually approved by the city council in July to meet a financial deadline. On Tuesday, council members approved the loan agreement.
Councilman Randy Shelton was absent.
The city’s redevelopment agency was dissolved earlier this year due to a state Supreme Court decision. In January, the city council voted to become the successor agency.
Behrmann has said he expects the city will be allowed to finish redevelopment projects already in the pipeline since the money has already been collected, but it’s unclear what will happen after that.
By using a combination of private and public money, Galt has improved its downtown core with new buildings and landscape. Both Brewsters Bar and Grill and Galt Place are the results of the former redevelopment agency’s efforts.
Also at Tuesday’s meeting, the city council approved using an additional $435,000 in state transit funds for sidewalk and road improvements.
This includes continuing the city’s ongoing pavement maintenance program and upgrading city sidewalks to be compliant with the Americans with Disabilities Act.
Contact reporter Jennifer Bonnett at email@example.com.