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Peekskill Officials to Approve $3M Tax Anticipation Note Monday

The Peekskill Common Council is scheduled to approve a tax anticipation note for $3 million during Monday’s special common council meeting.

The Peekskill Common Council is expected to approve a resolution for a $3 million tax anticipation note to maintain operation until taxes are collected.

Collection for this year’s $14.5 million tax levy is scheduled to start in April.

“We still have $6 million in the bank, but the problem is a lot of that money is assets that are tied up,” said Brian Havranek, Peekskill’s acting city manager. “We need cash to fund payroll and we’re also funding some projects now before we go out for bond. In addition to the TAN, we’re doing a bond anticipation note.”

Bond anticipation notes are short term loans used to fund projects that will eventually get funded by bonding. The city Havranek said there are a number of projects that the city intends to do long-term borrowing for including the:

  • The repair and painting of three water tanks in the city for $1.6 million
  • Peekskill Landing
  • Lincoln Plaza  
  • Route 6 Improvements

“Some of those interest rates [on the BAN] are 1 percent or less, so it’s very economical,” Havranek said. “What you do is take a $600,000 project here, a $1 million project there—you do them all under BANs until you get to the point where you’re ready to go out for a bond.”

Havranek said the TAN is necessary because the city is using it funds to pay some the other projects that are on tap for the city this year in addition to its payroll.

The city plans to rollover the BAN into the one that was done last year for $3.4 million to pay for costs associated with tax certiorari settlements and the central firehouse proposal. Officials hope to move forward with the BAN in about a month or so.

A PDF of the city’s resolution for the TAN is attached to this story.

 

George in NY February 02, 2013 at 01:08 PM
As I would say to my kids, a loan by any other name, still a loan. I am thinking of taking a LAN, Lotto Anticipation Note, as I anticipate hitting lotto for a million. If I follow through I, like government, will have a balanced no problem budget. i am just full of anticipation about my new found cash! Typical continued borrowing against tomorrow with what if's used. You live on a check ( taxes ) provided by a company ( taxpayers ). You spend more than you earn creating NEGATIVE balance. You scratch your chin and say, what if my company (taxpayers) has a sudden desire to pay me more than they ever have, a million more. I will anticipate that and apply for money to spend until they have that sudden anticipated idea to say double my salary. And if it takes just a bit longer, roll it over, heck I am full of anticipation. Just like all those home buyers that used houses like ATM's in anticipation of their home value multiplying 10 or 50 times greater value. And here we sit! Like I tell the kids, you are spending more than you have. I anticipate you living in the gutter without a piece of paper for a note. A loan by any other name.
George in NY February 02, 2013 at 01:13 PM
An added thought " tax certiorari settlements " so let me see if I understand this correctly. Part of the LOAN, I mean Anticipation note, is to make up for the taxes ANTICIPATED that didn't happen because of lowered taxes? So what you are anticipating this time is that the taxpayers will be able to pay their taxes because government thinks they still have something left after other government, fees, taxes, and so forth?
Wendy Kelly February 02, 2013 at 03:22 PM
I was told by a very reliable and trusted party what we read in the paper as far as our City debt is actually 10 times what is posted. Leave it to a bean counter to get us into this mess.
Liz Claire February 02, 2013 at 05:21 PM
We've already bonded to fund Peekskill Landing, Lincoln Plaza, and Route 6. When will some journalist uncover the rampant corruption of the Foster Administration? Where has the money gone?
choochoochick February 02, 2013 at 05:32 PM
I'm a little confused....a little off track....but, why would the city of Peekskill decide to cancel the Peekskill Celebration over lack of funds...but agree to support and invest in the Juneteenth Celebration in June? What is going on here? The Peekskill celebration is an event deemed for all citizens, and well attended by our surrounding communities...it brings revenue to the city....Juneteenth is primarily an African American celebration. If fund raising is the issue....Peekskill Fireman collect for the Peekskill celebration every year...Fund raisers are also held for Juneteenth...Why would the city choose one event over the other? Please know that I am african-american....I believe that either both events are held,or both events should be canceled...
peeknobrainer February 02, 2013 at 08:40 PM
Ah, 1975. The Paramount had shut down, the City of Peekskill was in profound budget crisis, and "planning" efforts were imbecilic. Have we somehow come full circle? Again? ""Those who cannot remember the past are condemned to repeat it."
Liz Claire February 02, 2013 at 08:57 PM
Havranek is holding on to his pension, selling out Peekskill taxpayers to enact Foster's rape of people who care. Shame on him and her.
john basic February 02, 2013 at 09:33 PM
So, the budget is off by at least 3 million (plus interest on the new loan) (TAN) How will that be paid for by next January. Does the new budget included the 3 million dollar loan It sounds like the city is sinking and basically spending more than it takes in,
john basic February 02, 2013 at 09:34 PM
Another thought, how much will the BAN be for? Another 3 million..So now we are at least 6 million in the red and counting,
leesther brown February 02, 2013 at 10:10 PM
Where is the $8.5 million Pataki gave down@ the Lincoln Depot in 2005/6,what was that money used for?
john basic February 03, 2013 at 01:10 AM
TAN, BAN, It's al the same thing. The city does not have enough money to pay their expenses. Someting has to give..eventually.
john basic February 03, 2013 at 01:11 AM
How is the search going for a new City manager? Curious

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