From the Terre Haute Tribune Star:
The Terre Haute City Council on Thursday night authorized city officials to borrow a little more than $5 million to meet a temporary cash-flow shortfall.
The nine-member council unanimously approved a special ordinance authorizing the short-term loan, known as a tax anticipation warrant, after about 30 minutes of discussion and questions at the council’s May regular meeting.
The loan for $5.02 million, which has not yet been obtained, will help the city cover expenses until it receives property tax revenue it is owed from the state at the end of June, said Leslie Ellis, city controller.
More than 80 cities, towns, school districts and other taxing entities across Indiana are facing the need for similar loans, said Gerald Malone, an accountant with H.J. Umbaugh & Associates in Indianapolis, which was hired to help the city through the loan process.
“It’s the result of the property tax caps” and a drop in income tax revenue due to the slow economy, Malone told the council. “Cash reserves are starting to dwindle. Terre Haute is not unique in that regard.”
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http://tribstar.com/local/x1856222884/City-Council-authorizes-5M-loan-for-city
