A taxshortfall of over a million dollars has caused headaches for the City of Uticaand the School District. The two sides have gone back and forth trying to comeup with a solution. Tonight the council committee approved a plan for theschool district to take out a revenue anticipation note of $1.3 million thatthe City must pay back within a year.
CouncilmanJoseph Marino says, “The whole deal is the taxpayers are going to beresponsible for all this eventually anyway. So the least burden on thetaxpayers was the proposal that we provided and that the school boardaccepted.”
CouncilwomanSamantha Colosimo-Testa says, “I think the finance committee really likethe agreement. I mean it’s not in the best interest of the taxpayer andeverybody in general, but it’s something that will work and something that theCity and the School District can work with.”
According to the council the school district’sinterest rate would be lower – ultimately making this the cheapest way possiblefor the taxpayers. Many agree that this proposal will save the most money andhave little effect on credit ratings.
Councilman Marino says, “This is a minor impact to the City’scredit rating, I mean everything that we do affects our credit rating. I meanthat’s no secret, everyone knows that we’re in tough financial times so thisdoesn’t really put too much of a strain on us”
This was the first step towards a solution but it’s not a donedeal yet. Councilwoman Colosimo-Testa added, “Until we get the actually bindingagreement, full contract signed by the School District and the City of Utica Ithink more questions should be asked and more answers should be answered. Sowe’ll wait until we get the actually contract, the binding contract to figureout where we’re going from there.”