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St. Lawrence County borrowing $10 million to meet cash crunch

Posted 8/25/15

By JIMMY LAWTON CANTON – St. Lawrence County will once again borrow $10 million to meet its cash flow needs. The county’s finance committee approved a resolution in a split vote Monday to borrow …

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St. Lawrence County borrowing $10 million to meet cash crunch

Posted

By JIMMY LAWTON

CANTON – St. Lawrence County will once again borrow $10 million to meet its cash flow needs.

The county’s finance committee approved a resolution in a split vote Monday to borrow the money. The action will need approval from the board of legislators.

“Due to the current financial obligations of St. Lawrence County and a decreasing level of cash flow available, St. Lawrence County is in need of issuing revenue anticipation notes to meets its cash flow financing needs for the remainder of the year,” the resolution says.

This is the fifth consecutive year the county has had to borrow money and the trend is likely to continue into the near future.

The county borrowed $8.5 million in 2011, $12 million in 2012, and $10 million in 2013 and 2014.

Last year the county adopted a five-year financial recovery plan that included a one percent increase in sales tax was supposed to allow the county to start building back its depleted balance and reduce its reliance on borrowed cash.

However, declining sales tax revenues and increasing health care cost has left the county with a budget gap of more than $4 million.

The recovery plan was part of an agreement struck with state representatives that allowed for a 1 percent increase in the county’s sales tax from 3 to 4 percent.

Although the county has failed to meet that goal, the state legislator approved the continuation of the sales tax increase in June.

In past interviews St. Lawrence County Treasurer Kevin Felt said believed the county would eventually be able stop borrowing money if it is able to stick to its proposed plan.