Bridge Loan at 1.35% Interest

Resolution #9-2014 — 2014-04-14

WHEREAS

• the Village of Red Hook has drafted its tentative budget for 2014-2015
• the final phases of the 2013-2014 budget year are approaching and it is known that budget lines for central district snow removal, snow removal materials were exceeded as well as highway vehicle repairs budget line
• the overages may be addressed with transfer funds from other budget lines at year end, that is not certain until the final fiscal year figures are reviewed
• the potential overages of $15,000.00 need a funding source
• the Village can modify its bridge loan by resolution to borrow the shortfall and repay it in June 2014 with budget lines increases for said expenses
• there may be a need to reduce the impact on the General Fund by exercising the bridge loan for the gap between payment by the Village and the current budget
• Salisbury Bank has an existing line of credit and financial date and offers a bridge loan to the Village of Red Hook at 1.35% interest

RESOLVED

• the Village Mayor can exercise the bridge loan up to the amount of the shortfall, if needed, and the sum plus interest will be inserted in the 2014-2015 budget