Louisville Metro Government will borrow $10 million from the Louisville Water Company.
The Metro Council gave final approval to the loan Thursday night. It will be combined with $4 million from the city’s rainy day fund and distributed to a group of retired firefighters who sued the city after being underpaid for overtime.
Now, the focus turns to repaying the money. The Water Company loan will gather about two percent interest and city Chief Financial Officer Steve Rowland says the payments will be relatively painless.
“We’re going to be able to replenish this fund without taking revenues that we budget and anticipate on a regular basis to come in,” he says.
The Water Company loan will be repaid out of the annual dividend the company gives the city. The rainy day fund will be replenished with profits from the new arena and back taxes paid by businesses. Both issues cleared the Metro Council with 21 votes in favor, two abstentions and three members not voting.