.

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.

 

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

Boards

More »
Got a question? Something on your mind? Talk to your community, directly.
Note Article
Just a short thought to get the word out quickly about anything in your neighborhood.
Share something with your neighbors.What's on your mind?What's on your mind?Make an announcement, speak your mind, or sell somethingPost something
See more »