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

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