Proposed Borrowing

Posted by MJ

The Buffalo News reported on the borowing plan submitted to the council for discussion:

City Treasurer Michael E. White recommended a nearly $7 million program of borrowing to the Common Council last week and gave the aldermen two weeks to decide how much of it they want to carry out

“The city hasn’t borrowed in the last four years. A lot of needs have reared their ugly heads since then,” White said. “I hate to borrow money, I really do, but with our cash flow situation, we need to do it.”
With interest rates at historic lows and the city’s credit rating at historic highs—A2 from Moody’s Investors Service, A-minus from Standard and Poor’s — the treasurer, whose City Hall nickname is “Dr. No,” says now is the time to pull the trigger
Some of the expenditures in the package already have been made and need to be paid off. Examples include the city’s new fire truck, about half of which was paid for by a federal grant. But $240,000 of the cost is the city’s responsibility.

White also said the city needs to borrow $860,000 to pay for the 17,000 garbage and recycling totes to be distributed throughout Lockport next month.

The city also faces a $440,000 tab for the repair of a sinkhole that kept South Transit Street closed for three weeks this spring. The project involved the replacement of sewer and water mains.

A building to house emergency generators, installed at the water filtration plant in 2008 and 2009, also needs to be paid off, to the tune of $465,000....


LucianoLockport said...

Funny how this city's leaders just continue to spend spend spend. No one looks at the real problems and wants to come up with solutions, instead let's just keep taxing the hell out of the people who own property so no one at all wants to live or do business in Lockport. Meanwhile in Amherst, the school board is looking for ways to stick with the tax cap. They should give Lockport a lesson or two. http://www.buffalonews.com/city/communities/amherst/article562358.ece

MJ said...

They said they aim too. I think most will say that. Regardless Amherst will have to cut 5.6M to stay within the limit.

The city over the past few years has been pretty aggressive at cutting etc to keep any budget increases minimal. I don't completely see where your comment is coming from.

I submit we are almost at the point (if not past it) where these cuts will only start to do us more harm. We need to lower the tax rate by increasing the taxable value of the city, not by cutting the budget. No one running has a plan for that.

Seeing the city hasn't bonded anything in a few years and most of these requests are sensible/needed. We'll be lucky if mandated pension , contractual salary and healthcare premium increase do not east up that 2% on their own.

Xavier said...

I think it's a no brainer. (For once I credit Mike White.)
Without this WE will be hurt - not the City "fathers."
They can't cut any more and I really want that fire truck. (Yes - I agree they went about that the wrong way resulting in Mr. Chapman's "No" vote-don't remember what Smith did-which cost us the extra cash.)

Post a Comment

Please be be respectful. Diverse opinions are welcome and encouraged. Trolling/baiting/personal attacks/spam will be deleted on sight, as will respnding to one that has yet to be deleted. Do not encourage the behavior.