This item on tonight’s City Council agenda is expected to be referred to the Budget and Appropriations Committee:
Communication from Finance Department re: Approval of Tax Anticipation Notes to Pay Current Expenses and Obligations of the City ($110,000,000), referred to Budget & Appropriations Committee.
The city borrowing to pay operating expenses has become common practice, but it also points out the city is running low on cash. Tax Anticipation Notes (TANs) provide short-term borrowing at a low interest rate that is paid off as tax revenues come in. Historically the city uses this practice as it approaches the end of the budget year. The city is now into its eighth month for the budget year that ends June 30. TANs are used to finance operating expenses as well as capital improvements such as roads, buildings and bridges.
See the full council agenda here.