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Columbia council authorizes staff to pursue bridge loan or line of credit as interim financing option
Summary
Council authorized staff to begin exploring terms for either a line of credit or a revenue anticipation/bridge loan (TAN/RAL) — staff referenced a potential $2,000,000 bridge loan — and instructed that any final terms would return to council for approval.
On Feb. 10 Columbia Borough Council unanimously authorized staff to pursue discussions with lenders about short-term interim financing, including either a line of credit or a revenue anticipation (bridge) loan.
Finance staff told council they were looking at a potential $2,000,000 bridge loan to address cash-flow timing between receipts and near-term obligations. Council members emphasized that the authorization is only to start negotiations; any final loan amount, terms, or use of proceeds would require a future council vote and legal review. One councilor reminded colleagues that use of any bridge loan would require counsel approval and that the council must still approve final terms once staff returns with offers.
Councilman Cooper made the motion and Councilman Murphy seconded; the voice vote carried. Staff said they expect to have terms available for the next meeting.
