LAPEL – The town of Lapel may need to borrow funds for street repairs next year, unless the state meets the promised repayment.
The town hall of Lapel may have to make temporary loans on several accounts or it will be unlikely that street repairs will take place in 2022.
Budget consultant Janet Alexander told council members on Thursday that there were no funds available.
When the Indiana Department of Transportation (INDOT) replaced the Indiana Bridge. 38 west of the intersection with Ind. 13, said board chairman Chad Blake, there was an unofficial alternate route that resulted in heavy traffic on a Lapel street.
Blake said the state agreed to reimburse Lapel for the repaving of the street. “The state has not reimbursed the municipality of Lapel.”
The cost of repairing the road has been estimated at $ 170,000.
He said INDOT offered a payment of $ 40,000.
Alexander said that because INDOT did not reimburse the city, it has an effect on the 2021 and 2022 budgets.
She suggested that city council approve a temporary loan of $ 120,000 from utility accounts for road works in 2022.
Alexander said the temporary loan could stay in three installments of $ 40,000 each.
“Are there funds in uncommitted utility budgets that could be used for a temporary loan? Blake asked.
Deputy Clerk Paula Lee said there were funds available.
City Councilor Jason Kleinbub eventually offered to borrow funds from the city donation made from the Olivia Cascadden Fund.
The council has not made any decision on borrowing funds for street work in 2022.
The city has requested a grant of up to $ 1 million from the National Water Infrastructure Fund for an upgrade of the water supply system.
The state agency has received 200 applications for funding and is expected to announce the grants in August.
Upgrading the Lapel water supply system is on the state’s priority project list.
Lapel received a $ 700,000 grant from the Indiana Office of Community and Rural Affairs to modernize the water system.
The project is expected to cost $ 4.7 million. It includes the installation of 10,550 linear feet of water main, comprehensive well upgrades, and water treatment and storage upgrades.
Blake said any funds the city receives as part of the latest grant application will reduce the amount borrowed from Indiana Bond Bank.
Repaving of streets funded by a state grant for level crossings is expected to begin next week.
Streets to be repaved include County Road 200 South past the Fire Hall, Vine Street, 10th Street and Brookside.
Follow Ken de la Bastide on Twitter @KendelaBastide, or call 765-640-4863.