The Village of Red Hook is advancing $32,407 from its general fund to cover engineering expenses for its phase 2 sewer expansion while awaiting reimbursement from a Dutchess County grant, according to The daily Catch.
The interfund advance will be used to pay outstanding invoices to Delaware Engineering for work including a 700-page preliminary engineering report. The village received a $500,000 county grant in January to reimburse eligible expenses related to the sewer project.
The latest advance is the third time this year the village has transferred money from its general fund to support the sewer fund, which has faced limited cash reserves. In March, the village advanced $200,000 to help the sewer fund make a capital bond payment and avoid default.
“Because the sewer fund is not flush with cash and the General Fund has a fund balance, this resolution is requesting that we [advance] from the General Fund so that we can pay these invoices and get reimbursed,” said Smythe.
The sewer fund later used a loan to repay that advance, though the loan remains outstanding.
In June, the village approved another $119,455 advance to cover additional Delaware Engineering invoices. The county reimbursed the village $86,960 in August, and Mayor Karen Smythe expects the remaining $32,495 to be reimbursed after the village submits another request.
The county allocated $300,000 of the grant for engineering costs, with the remaining $200,000 designated for a new equalization tank. Interest on the interfund advances is not eligible for reimbursement through the grant.
The latest resolution also drew procedural objections from Trustee Frances Uku, who voted against it. Uku said she received the version presented for a vote shortly before the meeting and argued that trustees should have adequate time to review resolutions involving public funds. The board approved the transaction in a 3-1 vote.
Updated projections show sewer expenses running about $5,300 above original estimates, leaving approximately $32,645 in reserves by year-end. The latest advance will carry an interest rate based on the New York Cooperative Liquid Assets Securities System monthly average rate, currently 3.58%.
