SARATOGA SPRINGS — Finance Commissioner Michele Madigan last week revised the city’s projected revenue deficit due to the COVID-19 shutdown as between $15 and $17 million for the calendar year, roughly one-third its $48.7 million operating budget for 2020.
At a special meeting of the City Council May 15, the council voted 4-1 for a measure to furlough employees that is expected to save the city about $277,000.
“The Council and Unions chose to make the furlough program voluntary, which was counter to the plan presented by Madigan and made an almost negligible contribution to addressing the city’s serious financial challenges,” read a statement issued by Madigan, explaining her dissenting vote on the measure.
At the regularly scheduled council meeting May 19, the council unanimously approved obtaining a Tax Anticipation Note, or TAN, for $6.3 million.
Madigan said she anticipated the month of June as when the city would deplete its cash; obtaining a TAN will push that date to December, although “it also presents new challenges and costs our taxpayers, as the principal must be prepaid within 12 months and the interest rate will likely be high given current economic conditions.” Madigan said she plans to access $6.5 million in fund balance to help the city meet its financial obligations through November.