By JIMMY LAWTON

OGDENBSURG – Ogdensburg City Council will meet at 7 p.m. Monday at City to consider borrowing $2 million and refinance an existing $1.62 million bond.

A resolution included in the agenda would allow the city to issue $2 million in tax anticipation note.

A tax anticipation note issued allows the city to finance an immediate project that will be repaid with future tax collections. In other words the city would be borrowing funds against taxes it intends to collect.

TANs tend to have very low interest.

However, the issuance of tax anticipation notes highlights the city’s low fund balance problem.

According to the resolution the city needs to borrow the money to ensure it has adequate cash flow to cover employee salaries and operational expenses.

In a recent report City Manager warned the council that the general fund balance was dangerously low. An effort is underway by the city to grow the fund balance through cost reductions, but not actions have been taken yet.

Conversely the city is also considering a resolution that would allow the city to refund $1.62 million of the $2.5 millions in bonds it borrowed in 2006-2007 for the construction of the Ogdensburg Dobisky Center, renovations at City Hall and the redevelopment of property acquired though tax sales.

A bond refund is similar to refinancing a loaning. It would allow the city to take advantage of lower interest rates. The city comptroller estimated the city would save about $59,0000 over the next 10 years.