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The Louisville Revenue Commission has given the city permission to borrow $10 million from the Water Company.

The city owns the Water Company and regularly receives dividends from the company’s profits. The loan will collect 2% interest, and the Water Company will retain a portion of the dividend for the next eight years as repayment.

The money will be used to pay a $14 million settlement with a group of underpaid firefighters. The city bonded a larger payment in a similar case last year, but the Water Company loan will collect less interest. Chief Financial Officer Steve Rowland says it’s a good deal, but it’s not likely to be repeated.

“We are not, Metro Government is not, looking at the Water Company as a source of borrowing on a continuing basis. This is a one-time event. We don’t anticipate asking for this again,” he says.

The remainder of the settlement will be paid out of the city’s $65 million rainy day fund. The Metro Council must approve the payments. It’s expected to do so Thursday.