Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the Municipal Finance topic
No spam. Unsubscribe anytime.
Mayor warns Newport has minimal remaining borrowing capacity; auditors and bond bank meetings set
Summary
Mayor Rick Alfred Chase told the council the city's line of credit is nearly exhausted and not fully revolving, leaving roughly $50,000 available to borrow; he scheduled follow-ups with auditors and the Vermont Bond Bank and said the council will be updated in two weeks.
Mayor Rick Alfred Chase told the council that an internal review showed Newport’s line of credit is not a fully revolving facility and that the city’s remaining borrowing capacity is nearly exhausted.
"We only have $50,000 left against which we can borrow," Chase said, describing the limit created by how the line of credit is structured and recent re-borrowings. Chase said he had previously operated under the mistaken impression that the city had more available credit; the discovery prompted immediate follow-up actions.
City staff scheduled a meeting with the auditors to clarify the auditor’s report and to ensure the council understands the cash-flow implications. Chase also arranged a meeting with the Vermont Bond Bank to explore longer-term borrowing or cash-flow products. He said the group expects to report back to the council at the next regular meeting in two weeks with preliminary options.
The council did not take an immediate fiscal action at the meeting but the report signals short-term liquidity risk that staff and council will address in the coming days.
