Notes to SEFA
The City was approved by the USDA Rural Utilities Service to receive a loan totaling $3,497,000.00 for phase two water system improvements. The amount listed for this loan includes the proceeds used during the year as well as proceeds used in a previous year. Interim loan financing was received for the construction period and the interim financing of $3,465,000 was paid directly to Cashmere Bank from USDA by EFT, when the interim financing was paid off and the bond was issued in December 2023. The amount listed for this loan includes the proceeds used during the year. The current year loan is reported on the city’s Schedule of Liabilities.
The amounts shown as current year expenditures represent only the federal grant portion of the program costs. Entire program costs, including the city’s portion, are more than shown. Such expenditures are recognized following the cost principles contained in Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards, wherein certain types of expenditures are not allowable or are limited as to reimbursement.