Red Hook WatchIndependent Community Resource

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

↑Meetings/Resolutions/10-2020
One-time (complete)formal_resolutionone_timeThe Village Treasurer is authorized to utilize a line of credit from Salisbury Bank at 3% interest to cover approximately $81,000 in street and drainage improvement project costs eligible for NYS CHIPS reimbursement, with reimbursement amounts to be used to pay down the line of credit to a $0 balance.
First seen
2020-03-09
Latest event
2020-03-09
adopted
Expires
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Resolution text

RESOLVED

  1. 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
Show preamble — 5 WHEREAS clauses
  • 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
  • WHEREAS, 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
  • WHEREAS, 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
  • WHEREAS, the CHIPS program utilizes a reimbursement methodology and the Village has incurred the costs, paid the contractors and submitted our request to CHIPS
  • WHEREAS, the Village also has a line of credit with Salisbury Bank at 3% interest

Lifecycle (1 event)

2020-03-09adoptedvote: unanimous
Authorize the Treasurer to utilize a line of credit with Salisbury Bank up to $80,000 to cover CHIPS 2019-2020 street improvement project costs pending reimbursement.
moved by Blundell · seconded by Kovalchik
Show text snapshot for this event
Resolved
  1. 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
Whereas
  • 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
  • WHEREAS, 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
  • WHEREAS, 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
  • WHEREAS, the CHIPS program utilizes a reimbursement methodology and the Village has incurred the costs, paid the contractors and submitted our request to CHIPS
  • WHEREAS, the Village also has a line of credit with Salisbury Bank at 3% interest
Subject key: chips_2019_2020_line_of_credit