CHIPS 2019 – 2020 FUNDING STATEMENT WITH RESOLUTION – Line of Credit and Reimbursement

Resolution #10-2020 — 2020-03-09

WHEREAS

• the Village of Red Hook is eligible for NYS CHIPS funds to upgrade and improve it's streets and related infrastructure and complied with purchasing standards
• the village selected appropriate contractors and suppliers who completed street and drainage improvement projects as capital improvements eligible for CHIPS reimbursement with costs of approximately $81,000
• the Village utilizes its Highway Department to coordinate the projects but the major contractual costs are charged against cash flow to await reimbursement, creating a cash flow restriction
• the CHIPS program utilizes a reimbursement methodology and the Village has incurred the costs, paid the contractors and submitted our request to CHIPS
• the Village also has a line of credit with Salisbury Bank at 3% interest

RESOLVED

• the village Treasurer is authorized to utilize the line of credit from Salisbury Bank to cover the costs submitted to CHIPS. The Mayor and/or Treasurer are authorized to exercise the line of credit up to the amount of the installation and materials costs, up to $80,000. With line of credit option utilized, the Village will use reimbursement receipt amounts to pay down the line of credit accordingly and reduce the amount borrowed from Salisbury Bank to a $0 balance for this activity