At the beginning of this year, Chautauqua County officials were criticized by the state comptroller’s office in part because the county loaned $5.2 million to the North County Water District.

Corrective actions and a repayment plan was put in place. But county officials say the loan will generate taxpayers nearly a half a million dollars through interest.

Legislator Fred Larson, D-Jamestown, requested the Planning and Economic Development Committee hear from county Finance Director Kitty Crow about the loan to the district.

Crow met recently with the committee and stated that by loaning the money to the district, the county will make $483,000 from interest. She said had the county put that $5.2 million in a money market CD they would not have made nearly that amount.

Larson asked Crow if the county is subsidizing the North County Water District, to which she denied.

Crow said.

Since the water district does not have the money to pay back the county, it is getting a BAN this year so it can pay the county back in full, including the interest. That was part of the corrective action plan approved by the state.

Crow added because the county had a surplus, it was able to make the loan without raising taxes. she said.