Comment
Print
To The Editor;
The Rochester Director of Finance asked the Finance Committee this week to allow to implement Tax Anticipation Notes (TAN's) as a "Line of credit with one of our banking partners.
This would essentially have the note preapproved well in advance of needing the funds.
Wait! Does Rochester suddenly have a cash flow problem? Don't we have tens of millions of dollars in the Unassigned Fund balance "cookie jar." What is going on?
Is Rochester's largesse spending finally catching up with us? Didn't we just take over $6 million from out of the cookie jar to offset overspending and to keep the tax rate increase low? Have we taken an additional $3+ million out of the cookie jar to buy Care Pharmacy yet? These two examples add up to $10 million in
spending to me.
The amount that the Finance Director used for the preapproved TANs was in the $4-55 million range as a starting point and wants the City Manager to have full control and "final approval" over the process. What guarantee is there that the initial $4-$5 million won't grow to $10-$20 million in a couple of years?
Does this mean that the Council, once approving this, will no longer have oversight on borrowing for TANs which are short term loans with interest fees consistent with the going rates? We're going to pay interest to borrow money when we have $25-$35 million in the cookie jar?
The County tax bill, almost always $9 million, and being due by Dec. 17, is touted as a reason to support TANs. Wait! If my memory serves me correctly we pay half of the County taxes with our June tax bill? What happens to the money until December? So, do we really suddenly have to come up with $9 million in
December or is it half of that amount?
Will there be any public hearings? Will there be competitive bidding? Does our city take out TANs Now?
Will the Council go along with this control takeover? Will they concede even more power from elected officials to unelected bureaucrats? Stay tuned.
- Cliff Newton,
Rochester
All material on this site is copyright protected under penalty of federal law