According to an article in the Gazette Newspaper, Adirondack Trust was the successful bidder for the short term bond (twelve months) against anticipated city tax revenues. The interest was just .15 percent. I know that Commissioner Madigan was concerned about the rate the city might have had to pay so this appears to be good news.
The article also reported that the city issued $7.4 million in long term bonds which have an interest rate of only 2.15 percent.
Commissioner Madigan attributed the attractive rates to the city’s high bond rating of AA+ for the last nine years.
According to the article
In addition to borrowing, Madigan’s plan to balance the city budget this year includes drawing $6.5 million from the city’s fund balance, asking for $3.4 million in expense cuts by city departments, and achieving at least $277,000 savings from a voluntary employee furlough program.Gazette June 5, 2020
I remain confused as to how $6.5 million plus $3.4 million plus $277,000.00 will fill the projected city deficit this year of $15 million to $17 million. I have sufficient faith in Commissioner Madigan and the council that there is a solution hidden in all of this.