Open letter to Richmond residents:
Re: “Metropolis trying to borrow $36.5M to cowl losses,” Information, April 30.
Additional to a latest Richmond Information article, residents ought to observe that on Monday, Might four, Richmond Metropolis Council’s Finance Committee beneficial adoption of a Income Anticipation Borrowing Bylaw.
With last council approval subsequent Monday, this bylaw will allow the town to quickly borrow a most of $36.5 million with compensation of any excellent monies out of this 12 months’s property taxes.
Such a bylaw, albeit in a decrease quantity, has been in place for many years. It has by no means been used. It permits momentary borrowing ought to the town require funding to fulfill lawful expenditures or obligations to different authorities our bodies which can be due earlier than ample property taxes are obtained.
Though council has prolonged the date for fee of property taxes with out penalty this 12 months, we don’t count on to make use of the permitted credit score services. Relatively, council would first draw on metropolis reserves.
This bylaw merely gives a helpful security web ought to there be a necessity for brief time period borrowing throughout these uncommon occasions. We consider this to be a prudent precautionary measure.
As the results of cautious monetary practices over time, our metropolis enjoys a robust monetary place. Although the worldwide pandemic considerably impacts our group, metropolis council and employees will preserve robust fiscal management in addition to the applications and providers obligatory to make sure a secure and resilient metropolis. This Income Anticipation Borrowing bylaw helps our objectives.
MAYOR, CITY OF RICHMOND