Council Approves $7M Loan Renewal to Maintain Positive Fund Balance

The Anderson City Redevelopment Commission has taken a significant step towards financial stability by approving a $7 million loan, which will be drawn down as needed over the next year. This decision, made during the meeting on July 8, 2025, aims to ensure that the city maintains a positive operating fund balance.

The loan, which carries an interest rate of 3%, will not result in an immediate transfer of funds. Instead, the city will access the money incrementally, allowing for careful financial management. This approach is designed to prevent the operating fund from going negative, a critical factor for the city’s fiscal health.

Commission members highlighted that the funds will come from the ARC fund, which currently boasts a cash balance of approximately $8.25 million. This fund generates about $300,000 annually in interest, providing ample reserves for the loan. The decision to utilize non-TIF (Tax Increment Financing) monies for this purpose underscores the city’s commitment to responsible financial practices.

In addition to the loan approval, discussions included the importance of maintaining a robust fund balance to support ongoing city operations. The commission emphasized that the careful management of these funds is essential for the city's long-term financial sustainability.

As the city moves forward with this financial strategy, residents can expect continued efforts to ensure fiscal responsibility and stability in Anderson. The next steps will involve monitoring the fund's performance and making adjustments as necessary to meet the city's operational needs.