City Looks to Borrow $6M

Nearly four months after the City of Long Beach borrowed a collective $4.5 million to cover a shortfall in the city’s payroll and retirement payout, the City Council will be asked to consider another borrowing plan next week.

The city announced Friday that a special City Council meeting will be held March 27 to vote on a resolution delegating the comptroller the power to authorize the issuance of $6 million in revenue anticipation notes in response to an interim review from Moody’s Investors Service to improve the city’s bond rating, according to the city’s wesbite.

The announcement posted on the site reads:

“Since a key credit rating criteria used by Moody's is liquidity, or a projection of balances in the future, Long Beach is issuing revenue anticipation notes now which will have a maturity after the receipt of next year's property tax bills and seasonal revenues. This ensures that the City will be able to perform essential services while the gap-closing measures take effect. This borrowing serves as a bridge to allow the City to make the necessary changes to balance the budget going forward. If this borrowing did not take place, the City would have been forced to immediately layoff 20-30% of its staff.”

The resolution states that the revenue anticipation notes are sought "in anticipation of the collection or receipt of various revenues, including sales tax, sales and use tax, utility gross receipt tax, as well as various fees, rates and charges, during the current fiscal year..."