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Days after agreeing to borrow $5 million, city of Utica to discuss borrowing more
UTICA, N.Y. (WKTV) - Four days after the City of Utica agreed to take out a $5 million, short-term loan, they're dipping into the well again.
On Wednesday afternoon, the city's common council is expected to ask for more money in order to make payroll and give the Utica City School District its $5 million in taxes.
The city council met Friday to approve a $10 million short-term loan in order to meet their payroll and pay the school district its taxes. But the majority of the council would only support borrowing $5 million for their own payroll, which leaves the school district without their tax payment, which the city collected and spent.
Now, the council is re-convening on Wednesday in order to increase that loan amount to the original $10 million and give the school district their money.
At this point, borrowing is the only option.
"That's why we're bonding," said Common Councilman Rocco Giruzzi. "We don't want to bond, because $10 million, you're going to be paying a high-interest rate. So obviously, we didn't want to bond at all, but there's really no money there."
Giruzzi says he feels there is support to go for the $10 million, or else the council wouldn't be re-convening on Wednesday.
The money would be repaid as soon as the city gets its state aid money at the end of March.
The school district is hoping the city bonds for the whole $10 million.