The town once again will borrow more money to help keep government operations going until taxes start coming in early next year.
The Town Board has agreed to borrow $900,000 with the expectation of repaying the short-term loan with next year’s tax revenue.
That’s in addition to the $1.1 million the town recently agreed to borrow against anticipated town revenue to keep highway and water operations afloat for the remainder of the year.
“We’re short money,” said Supervisor Keith E. Dash.
A combination of costly debt incurred by a multi-million dollar water project and water rates that aren’t high enough to support the increased expense of operations is a big reason for the shortfall in cash.
Town officials used similar short-term borrowing to keep operating last year, borrowing $2.1 million which already has been paid back.
The town decided to go back to the short-term borrowing again this year, as officials try to dig the cash-strapped town out of a financial hole.
“All it is is cash flow,” said Scott P. Dill, an accountant with Johnson, Mackowiak & Associates, the Fredonia firm serving as the town’s financial consultant.
Also this week:
• The Evans-Brant Chamber of Commerce will hold its Small Business Education Seminar from 6:30 p.m. to 7 p.m. on Thursday at the Evans Historical Society/1857 Museum, 8351 Erie Road. The topic is “Financial Advice for Business Owners.”
This is the first in a series of small business seminars the chamber will hold on the third Thursday of the month in 2012-13.