Is Our City Having Trouble Making Payroll? ~ Annapolis Capital Punishment

Thursday, April 8, 2010

Is Our City Having Trouble Making Payroll?

Yes it is. At last night's finance committee meeting, it was decided to take action at next city council meeting to deal with a cash crunch. Today's news release came to me after a conversation with Alderman Ross Arnett  which reads that we are "pursuing a line of credit in order to make payroll and meet other expenses for the next few months." pursue a line of credit. Okay. Businesses do that from time to time, but uh's bad.

The news release says it "will enable the City to offset revenue shortfalls until the City starts receiving new Fiscal Year 2011 property tax revenues in October."

More "offset revenue shortfalls"?

Mayor Cohen tells us that "taxpayers should remain confident in the City’s overall financial
strength and solvency" and the release concludes by saying "The three members of the City Council’s Finance Committee are co-sponsoring the resolution which will be introduced Monday night and brought for a vote on April 26th."

I am wondering if this needs more than a resolution? Are we going beyond out chartered limit of borrowing? if so, it will need a change of the charter. I think this is going from real bad to really, really bad. I would not be surprised if we soon hear about more layoffs--lots more layoffs.

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