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Council OKs revolving line of credit to smooth municipal cash flow
Summary
Council approved a resolution establishing a revolving line of credit to manage uneven cash flow caused by property tax and sales tax timing. The measure passed unanimously after discussion about use cases and safeguards.
Helena City Council voted unanimously to establish a revolving line of credit intended to smooth short‑term cash flow fluctuations.
Mayor Billy Rosener explained the city receives most property and ad valorem taxes in the first half of the fiscal year while sales tax receipts arrive later in the month, creating cash‑flow variability. He said a line of credit is common for municipalities to manage such timing differences and cited a previous bridge washout in Quail Ridge as an example of an emergency expense the city might need to cover. "A revolving line of credit is common with banks and municipalities to even out cash flow; this would be for short‑term cash flow issues," Rosener said.
Councilmember Dennis Wilson asked whether the mechanism was intended to avoid tapping reserves; the mayor confirmed it is designed to avoid drawing down reserve funds for short‑term needs. Resolution 06082026D‑ADMIN passed with an AYE vote from each councilmember.
