Evansville City Council approves ordinance allowing $15M loan

Evansville City Council approves ordinance allowing $15M loan

EVANSVILLE, Ind. (WFIE) - The Evansville City Council voted to pass an ordinance allowing the city to receive $15 million in loans from the Indiana Bond Bank.

COVID-19 has thrown a wrench in many government’s plans for 2020. The city of Evansville is no exception.

Gov. Eric Holcomb’s current orders allow for property owners to pay property taxes two months later than usual. Instead of May 11, property owners have until July 11 to make those payments.

Evansville city leaders aren’t exactly sure how much they’ll receive for the month of May.

For more than half an hour, Evansville City Council members deliberated an ordinance that would allow the city to borrow $15 million from the Indiana Bond Bank. It passed with a six to three vote.

“This isn’t tax revenue that we’re losing, this is tax revenue that was deferred and delayed," councilman Ron Beane said. “This is just a short-term loan to help us stay in the black, for the three or four months that we would have typically had the money.”

Beane says the loan will cover operating expenses typically taken from the General Fund and Parks and Recreation Fund, a majority of which includes salaries and benefits for employees.

“The total anticipated revenue is $26 million, so this $15 million should sufficiently cover what we get late," Beane said.

City Controller Russell Lloyd Jr. says they’ll likely begin paying back the loan after July, as the loan is expected to have a little less than a 2% interest rate.

“For cautious sake, we probably want to wait till July to see the rest of it coming in, and unfortunately there may be taxpayers that aren’t able to make their payments at all, so I kind of want to see where the delinquencies are,” Lloyd Jr. said.

“It just lets us access money during a normal time frame that we would be receiving it, as opposed to the people that are going to pay two months late because the governor declared an emergency and said that was okay," Beane said.

Councilman Beane tells us they anticipate receiving this loan by the end of May.

Copyright 2020 WFIE. All rights reserved.