City staff believe they’re $500,000 short of locking in $3 million in funding needed to get a proposed boat launch initiative underway in earnest.

That includes $1.5 million in state Redevelopment Assistance Capital Program state funds. But those funds require a dollar-for-dollar match.

To that end, the city has contributed $500,000 from its American Rescue Plan allocation while the county has also kicked in $500,000 from the same source.

A solution for that last $500,000 before the City Council Monday night received a tepid response.

It ties back to a $3.6 million loan that the city authorized earlier this year. That was designed to pay off existing debt and match $2 million in RACP funding for improvements to the parking garage. That leaves $800,000 from that borrowing available to the council.

“If we take $500,000 from the loan proceeds,” City Manager Nancy Freenock said, “we can go ahead and start the real work on the boat launch.”

“If we have overtaken a loan for a specific purpose,” Councilman John Wortman said, “and don’t need that loan for that purpose, in my opinion, (we should) put (those funds) back toward the principal.”

“Where would you get the rest of the match?” Freenock asked. “That’s my question.”

Councilman Maurice Cashman raised concerns about borrowing down the line at a higher rate that his loan.

“Things change,” he said, “and if we have the ability to take a low-cost loan and move those funds, I think it’s wise to do that.”

The Northwest Commission had secured $1.5 million for a Pine Grove facility that aimed to house Truck Lite and discussion Monday was that funding is in the process of being transferred to the riverfront project. That’s the funding source that requires a dollar-for-dollar match.

Freenock said a business plan is required to the state for that funding by Dec. 23.

“If we don’t have funds in place, we can’t get going,” Councilman Maurice Cashman stressed.

Councilwoman Wendy McCain raised concerns about the lack of budget discussions “the bigger this conversation gets.”

A motion to table action on the proposal — using $500,000 from the loan to match the RACP funding — until next Month was approved.