The Saugerties Village Board voted on Monday, Might 15 to hitch a New York State program that provides curiosity on cash deposited by municipalities. The Cooperative Liquid Belongings Securities System (CLASS) permits municipalities to deposit cash in interest-bearing accounts, village treasurer Paula Kerbert mentioned on the village board’s common assembly. The village can deposit cash on this account and may withdraw it at any time with out penalty, in accordance with Kerbert.
The rate of interest on cash deposited within the account fluctuates primarily based on the bond market, Kerbert mentioned. The current charge is 4.9 p.c. “I don’t see a down facet to it,” mentioned trustee Terry Parisian.
Trustees will maintain off any exercise on the account till after taxes are collected in June. The board would resolve after that whether or not to deposit cash within the system.
In one other monetary matter, the board voted to borrow $300,000 via a tax anticipation word. Kerbert mentioned that she anticipates the word will cowl bills that may come due previous to the gathering of taxes. The full quantity due in taxes, together with unpaid taxes from earlier years and anticipated tax revenues for the 2023/24 fiscal 12 months, is $2,252,072.33, the decision states.
The village is borrowing the cash via a 5 p.c three-month word from M&T Financial institution, Kerbert defined. It is going to assist money circulation till taxes are available in June.
In response to a query from trustee Donald Hackett, Kerbert mentioned that the village could also be in need of cash to pay all its bills earlier than taxes are collected. “I’m masking all of the bases,” she mentioned. “Now we have two bond funds developing, a firetruck cost developing, and payroll is all the time enormous in Might.”
Parisian requested why the decision states that the bond is for one 12 months, whereas the dialogue centered on a 90-day word. The decision permits the board to increase the compensation interval to a 12 months, Kerbert mentioned. “Verbally, we’re saying it’s a 90-day word, however there’s nothing in right here that claims it’s a 90-day word with the chance that we will lengthen it to a 12 months,” Parisian countered. Kerbert mentioned that the intention is to pay the word in lower than 90 days.
Trustee Andrew Zink requested whether or not there’s a precedent for borrowing in opposition to anticipated taxes. “We’ve by no means accomplished it,” Kerbert mentioned.
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