SAUK VILLAGE | Just two weeks ago, Mayor David Hanks recommended that the village board borrow $449,206 from the Village’s water fund, a dedicated noise mitigation fund and funds which were from the Cell Tower agreement so it could pay its debt service on the Village Hall and other obligations. The Village voted at a special meeting to replace the money with the property tax installment by the end of March, 2014.
At yet another “special meeting”, Hanks proposed that the
Village take out a $500,000 line of credit so that it can make payroll when
funds are low again. Hanks said that
Village Trustee Lynda Washington-House was the only Trustee who responded to
his call for suggestions on how the village should handle the situation. House’s response to Hanks was asking “what
were the past practices”. Hanks said
that in 2007, 2008 and 2009 the Village borrowed the money and paid it back
when funds came in. This time, Hanks is
not suggesting that when the money is used that it get paid back all at
once. Hanks suggested the village could “make
payments” over time.
The Village was facing a financial shortfall for the payroll
for this Friday, November 27th, however money from the insurance
carrier for the Sandy Cosey settlement and the special police detail paid by CN
Railroad helped make up the short fall according to Mohan Roa Finance Director.
Hanks suggested that the Village was going to have to make
budget cuts in the next budget cycle. “This
board is going to have to make some tough decisions”. “We’re going to have to tighten our belts”
Hanks said also stating that the Village has “cut overtime”. Village Trustee Rosie Williams suggested
raising property taxes to close the budget gap that is opening wider as opposed
to making cuts to the budget. The
Village faces an inter-fund debt from the General Fund of more than $2.1
million as a result of the most recent borrowing.
Village Trustee Derrick Burgess questioned why there was no
maximum rate of interest that could be sought for the Line of Credit worded in
the ordinance. Village Attorney Michael
McGrath suggested that the ordinance be amended to include language saying that
the maximum interest rate “will not exceed 7%”.
The Ordinance to authorize Hanks to seek a line of credit
was approved by a 5 to 1 vote with only Trustee Burgess voting no. “I don’t think borrowing more money is the
answer to the Village’s problems. I’m
waiting to see what his (Hanks’) plan is moving forward” Burgess said after the
meeting. “I’m only one person and one
vote on this Village Board” Burgess said.
Original material copyright 2013 Sauk Villager News; all rights reserved.
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| David Hanks, Mayor |
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