Utica Needs to Borrow $6.6 Million Dollars
By: Rachel Polansky
Updated: June 21, 2012
Utica's funds are drying up after years of dwindling resources and deficit spending.
As we reported earlier this week, the city's continuing shortage of cash is forcing the city Comptroller to borrow more than $6.5 million now and another $10 million later in the year.
Comptroller Michael Cerminaro says it's a necessary evil but he says there is light at the end of tunnel.
"All the reserves have been drained so we're now living on exactly what is passed in the budget, on a day to day basis. As long as people pay their taxes, as long as the sale tax revenue holds up, as long as departments watch their spending, we can get out of this mess, and end the short term borrowing," says Cerminaro.
But Cerminaro says getting out of the mess will take time if the city reduces spending and enters consolidation agreements. He says short term borrowing will continue for the next few years - until Utica can find sound financial footing.
As we reported earlier this week, the city's continuing shortage of cash is forcing the city Comptroller to borrow more than $6.5 million now and another $10 million later in the year.
Comptroller Michael Cerminaro says it's a necessary evil but he says there is light at the end of tunnel.
"All the reserves have been drained so we're now living on exactly what is passed in the budget, on a day to day basis. As long as people pay their taxes, as long as the sale tax revenue holds up, as long as departments watch their spending, we can get out of this mess, and end the short term borrowing," says Cerminaro.
But Cerminaro says getting out of the mess will take time if the city reduces spending and enters consolidation agreements. He says short term borrowing will continue for the next few years - until Utica can find sound financial footing.
