9/19/2011Posted 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....