By JIMMY LAWTON CANTON -- The St. Lawrence County finance committee has approved a resolution to borrow $5 million to meet cash flow needs for the remainder of the year. The practice of borrowing …
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By JIMMY LAWTON
CANTON -- The St. Lawrence County finance committee has approved a resolution to borrow $5 million to meet cash flow needs for the remainder of the year.
The practice of borrowing cash to meet basic cash flow needs in the county has been the norm since at least 2011. However, $5 million is significantly less than the county has had to borrow in the past.
The county borrowed $8.5 million in 2011, $12 million in 2012, and $10 million in 2013, 2014 and 2015. In 2016 the county borrowed $9.5 million.
The county typically pays the loans off in one year, but accumulates more than $100,000 in interest on the borrowed cash. Reducing that interest payment has been a focus of the legislature in recent years. Last year 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.
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, though this year sales tax has improved.
While the resolution was supported by the finance committee, it will need a approval from the full board of legislators before being put into action.