City council to consider $400,000 loan to WAVE Transit
WILMINGTON, N.C. (WECT) - The Wilmington City Council will consider providing WAVE Transit with a $400,000 loan Tuesday.
A change in leadership prompted by significant financial issues has led WAVE Transit to once again request a total of $700,000 from the city and New Hanover County, this time in the form of a loan.
Staff determined WAVE will be able to use the $700,000 loan, that prompted the reorganization, as a means to fill that gap without having to dip into the system’s already waning fund balance.
“The city will be asked, as well as the county, for additional funding for WAVE so we’re going to be taking that into consideration. And I feel pretty confident that the city council will support that ask from WAVE to continue their operations. Obviously they have a shortfall with accounts receivable and we want to get them through this process. So it will be looked at as a loan as opposed to just ‘here’s the money,’” said Wilmington Mayor Bill Saffo.
The city will consider providing a $200,000 advance on that loan this week. The county is expected to provide an advance for half of its $300,00 loan as well.
The loan is expected to support WAVE’s financial shortcomings until the end of the 2019/2020 fiscal year.
“It will take us through at least June to see what kind of receivables they’ll be looking at in June," Saffo said. “Obviously, there’s a shortfall that’s coming into them on the Federal side and the state side so hopefully when June comes around their financial situation will improve and we won’t have to advance any more money but this will get them through the June time period."
City council will consider this at Tuesday night’s meeting. Due to the Coronavirus outbreak, the meeting will be limited to 100 people. All city council meetings are broadcast online and any public comments can be submitted electronically.
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