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St. Lawrence County tables plan to borrow $10 million for cash flow

Posted 8/24/16

By JIMMY LAWTON CANTON – St. Lawrence County Legislators tabled a resolution to borrow $10 million at a finance committee meeting Monday evening. The practice of borrowing cash to meet basic cash …

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St. Lawrence County tables plan to borrow $10 million for cash flow

Posted

By JIMMY LAWTON

CANTON – St. Lawrence County Legislators tabled a resolution to borrow $10 million at a finance committee meeting Monday evening.

The practice of borrowing cash to meet basic cash flow needs in the county has been the norm since at least 2011.

The county borrowed $8.5 million in 2011, $12 million in 2012, and $10 million in 2013, 2014 and 2015. The county typically pays around $100,000 in interest each year on the borrowed cash.

One of the major reasons the county runs low on cash is that it relies on reimbursements from the state, which are not paid back in a timely fashion. The county has also struggled with reduced sales tax revenues and increased personnel costs as it also struggles to stay below the state-imposed tax cap.

Earlier this year the county formed a strategic planning committee aimed at growing the fund balance and increasing revenues.

In July, the county approved a plan that aims to grow its depleted fund balance in hopes of getting to a point where it will no longer have to borrow money to meet cash flows needs.

According to the policy adopted in July the county's target is a fund balance equal to 15 percent of the total budget, which equates to $34 million in the 2016 budget.

However, legislators acknowledge that can’t be achieved in a single year. Instead the plan calls for building the fund balance by 1 percent or about $2.2 million each year until the 15 percent mark can be achieved.

The county is expected to revisit the resolution at a later date.