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Glen Cove to borrow up to $2.5M in advance of state aid
Glen Cove officials are to borrow up to $2.5 million to hold the city over until an expected infusion of state aid at the end of the year.
City Council members last week voted, 6-0 with one councilman absent, to approve the revenue anticipation notes that Democratic Mayor Ralph Suozzi said will help the city’s cash flow between April, when some bonds are due to be paid off, and December, when the state aid is expected.
Councilman Reginald Spinello, an Independence Party member, voted to approve the notes but said they’re indicative of “a real cash flow problem.”
“We have an unfunded deficit that’s in the $5 million range and that weighs heavily on the cash flow,” he said. “One of the things the city has to do is, we have to work our way out of this.”
Glen Cove issued revenue anticipation notes in the amounts of $2.4 million in 2012 and $2.9 million in 2011, according to a December borrowing document, the most recent available. The city has an overall debt of $60.7 million.
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