LITTLE FALLS — The city will issue a revenue anticipation note to cover a shortfall due to a gap in cash flow.
The Common Council authorized City Treasurer David Petkovsek to issue the note or notes in an amount not to exceed $500,000 during a recent meeting.
Petkovsek said the note will actually total $400,000 and the interest for borrowing it will be about $1,000.
He explained the city is owed about $200,000 in reimbursements for street paving through the Consolidated Highway Improvement Program. The work was completed later than usual this year because blacktop was not available at the time the paving would normally have taken place.
"The state only reimburses every three months," he said.
The city also is due to receive about $1 million in regular state aid by Saturday, Dec. 15, Petkovsek said, so the loan will be needed for only about a month. The city also expects to collect funds from water and sewer rents as well as its share of the county sales tax during the city’s current fiscal year.
Petkovsek said the need to issue a revenue anticipation note is rare for the city.
Housing rehab grant
The Common Council voted this week to authorize Mayor Mark Blask to sign and submit a Community Development Block Grant housing rehabilitation application for the current round of funding.
The application is due Friday, Nov. 16.
The council voted last month to retain the firm of C.T. Male to prepare the application.
The city was awarded a $435,000 Community Development Block Grant from the Department of Housing and Urban Development two years ago.
The council conducted a pair of public hearings regarding the state Community Development Block Grant program — one regarding the wrap-up of the current housing rehabilitation program and the other concerning the city’s application for another housing grant.
Jim Thatcher of C.T. Male reported improvements to 16 housing units were covered under the last grant. Ten were single-dwelling units and three were two-unit houses in which the owner lived.
Home improvements such as roof replacements, electrical work and furnaces can be funded under the program.
"Nine have been completed and the others are under contract," Thatcher said.
He said several of the homeowners are elderly or have physical disabilities, but all are living in their own homes.
Thatcher said the cost for the work on each unit totals around $22,000 or $23,000.
Blask said there is no cost to the city and no cost to homeowners for the work that is done.