Bank of Utica contacts City Comptroller to step in
By: Chelsea Rarrick
Updated: February 22, 2012
What was supposed to be a Utica Council meeting, turned into an announcement.
The City Comptroller, Michael Cerminaro says he got a call a little after 5 p.m. on Wednesday afternoon letting him know that Bank of Utica is willing to float a $10 million short term loan for the city.
On Friday, the Council approved a $5 million loan, but decided that wasn't going to be enough.
The Utica Common Council still voted in favor of the $10 million so the people who have been waiting to be paid by the city, get the money they've been owed.
"The school district employees need to get paid, like I said they're an innocent bystander, and this whole mess that we've created in this building because of substandard accounting practices. They have no right, this city, this building, to withhold that money," said Councilman, Joe Marino.
Cerminaro agrees that the school needs it's money, and a commitment should be honored.
But, he also says everyone needs the money.
"We're looking to get the school district up to $5 million if possible. Everyone's a priority right now. Payrolls a priority, vendors are a priority," said Cerminaro.
The city was still looking at other back-ups before the Bank of Utica made it's offer. But, Cerminaro says this is the best choice.
"They really stepped up to the plate. We had back up, but it was a little bit less favorable interest rate, and had some provisions in there that the city had to adhere to," said Cerminaro.
The City Comptroller, Michael Cerminaro says he got a call a little after 5 p.m. on Wednesday afternoon letting him know that Bank of Utica is willing to float a $10 million short term loan for the city.
On Friday, the Council approved a $5 million loan, but decided that wasn't going to be enough.
The Utica Common Council still voted in favor of the $10 million so the people who have been waiting to be paid by the city, get the money they've been owed.
"The school district employees need to get paid, like I said they're an innocent bystander, and this whole mess that we've created in this building because of substandard accounting practices. They have no right, this city, this building, to withhold that money," said Councilman, Joe Marino.
Cerminaro agrees that the school needs it's money, and a commitment should be honored.
But, he also says everyone needs the money.
"We're looking to get the school district up to $5 million if possible. Everyone's a priority right now. Payrolls a priority, vendors are a priority," said Cerminaro.
The city was still looking at other back-ups before the Bank of Utica made it's offer. But, Cerminaro says this is the best choice.
"They really stepped up to the plate. We had back up, but it was a little bit less favorable interest rate, and had some provisions in there that the city had to adhere to," said Cerminaro.
