Riverbank council to contend with $500K in money trouble

RIVERBANK -- The City Council tonight will get an update on the North County Corridor and try to deal with a pair of financial matters.

The money issues, totaling about $500,000, involve delinquent fire assessments on the Riverbank Housing Authority and a loan from the Stanislaus County Economic Development Bank. Dealing with them would help the city keep to its tight budget.

The council will consider a settlement under which the city would pay $98,283 in assessments and penalties from the Stanislaus Consolidated Fire Protection District. The bill had been $120,212, but the district agreed to forgive some of the penalties.

The authority had not paid assessments on nine properties served by the district for several years in the belief that it was exempt.

The city would pay half of the settlement in December and the rest a year later.

The county bank in 2008 provided a $500,000 loan to help with downtown beautification, with five repayments of $100,000 a year through the 2013-14 fiscal year. Reduced redevelopment income prompted the city to negotiate with the county to spread the remaining $400,000 through 2015-16.

The North County Corridor is a major road project from north Modesto to about six miles east of Oakdale. It includes a segment along Riverbank's south side, which would relieve congestion on Highway 108 through downtown.

The update will be provided by Matt Machado, the county's public works director and executive director of the North County Corridor Joint Powers Agency.

The council will meet at 6 p.m. today at City Hall, 6707 Third St., Riverbank.

Bee staff writer John Holland can be reached at jholland@modbee.com or (209) 578-2385.