CLAYTON, MO (KMOX) - St. Louis County Executive Charlie Dooley is asking the St. Louis County Council to approve a loan of up to $400 million for Metro Transit.
Dooley says the money is coming in from the sales tax increase, Prop A, passed a few years ago. He adds that half of the money collected was allocated to sit in a fund for capital improvements but because Metro has a lot of debt now, Dooley says they should be able to access the money.
“If we can loan them their own money which will only be spent for them, they can borrow that money and they can pay the going rate which they’re paying themselves. That will lower their debt and will help them do a better job in the future,” he said.
Dooley doesn’t know what the interest rate of the loan would be but says they would be required to pay it back in a timely manner. The council could give first round approval next week.