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Paterson council approves up to $70 million tax anticipation notes to cover early-year cash shortfall
Summary
The Paterson Municipal Council on March 25 adopted a resolution authorizing issuance of tax anticipation notes (TANs) not to exceed $70 million to bridge timing mismatches in state aid and cover large early-year obligations, including a $30.5 million pension payment due in April.
Paterson’s Municipal Council on Wednesday voted to authorize up to $70,000,000 in tax anticipation notes to stabilize city cash flow while state aid and other major revenues arrive later in the year. The measure, Resolution No. 26147, passed by roll call with seven votes in favor and two members absent.
The city’s business administrator told the council the move is a cash-flow mechanism and “just a mathematical problem,” not a sign of a structurally unbalanced budget. He said Paterson budgets on a calendar-year cycle while the state operates on…
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