VILLAGE FALLS SHORT ON CASH - BORROWING FROM PETER TO PAY PAUL

By Joseph Wiszowaty

SAUK VILLAGE | The Village is once again coming up short and cannot pay the debt on the Village Hall and two other bond issues which were for the Village's 9-1-1 Center and a Fire Truck. The 2007 series A-B and C Bonds are considered “Alternate Revenue Bonds” and were to be paid back by monies other than property taxes which hasn’t worked out too well for the Village since 2011.  The Village Board was scheduled to vote on moving funds around in order to pay the debt service on the bonds, however, the Village Clerk Debbie Williams forgot to put the Resolution on Tuesday’s agenda.  Now the Village Board will hold a special meeting in order to vote on the resolution this Thursday.

 

 

“As you all know we do not have enough money in (the) General Fund to cover debt services for the 2007 A Bonds (Editor Note: 2007A Bond is for the new Village Hall owing about $4.8 million still according to the 2011 Audit). The total amount due is about $685,000. Of the $685,000 we have paid about $450,000. And for the 2007 C Bond (Editor Note: 2007C Bond was for Fire Equipment owing $1.087,186 per the 2011 Audit) for the Fire Truck we owe another $27,000 (this year). In essences I’m asking for permission to move funds from Canadian National Noise Reduction Fund in the amount of $236,000; $47,000 from the Cell Tower Fund and from the Water and Sewer Fund of $166,206. The Debt Service is due on December 1^st but the check needs to go out no later than November 15^thso it can reach Amalgamated Bank” Mohan Rao told the Village Board.

 

 

Mayor David Hanks said that the Village should be able to pay back all of these funds with the next installment of property tax revenues before the end of the 1^st quarter of 2014. Hanks did not indicate what services the Village would have to cut in order to make up the $449,206 deficit this will create for this fiscal year. The General Fund is already in deficit to other funds in excess of $1.68 million according to the Village most recently released audit report. This now puts the General Fund deeper into deficit to other funds to the tune of $2,129,312 according to Village financial records.

 

 



Mayor Hanks reiterated what the Resolution sets out. “So we know where the money is being spent. There are three areas the money is being spent. You have debt services (Editor Note: this would be the new Village Hall), you have the fire equipment bond and telecommunication bond. Mr. Rao will update us as funds get moved back” Hanks said.