Last night, the city council narrowly approved on 1st reading what ultimately is an authorization to borrow $1.3 million. That $1.3 million is the only thing available that will allow the city to meet its short-term debt obligations coming due in April and May. No amount of cuts can generate that amount of cash in such a short amount of time.
While I’m not proud of the situation we’re in, I’m also not onboard with any option other than honoring our debt and starting to work through the debt load we have.
To clarify, this money is not being used to ‘pay’ for the cost overruns on the Civic. Those payments were made from the general fund over a year ago. This money is to pay our current bills and allow the city to continue to function.
If you’ve got questions, please ask. But know that without this cash infusion, the city will default on debt obligations starting as early as next month.
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