Canton City Council OKs Loaning Money from One City Budget Fund to Another
The city of Canton is borrowing $2 million from itself to meet start-of-the-year operating expenses. WKSU’s Tim Rudell explains.
Canton’s financial challenges for 2016 include a projected $4.2 million deficit. But, there is also a more immediate problem. Covering some expenses late in 2015 left the city’s General Fund too thin at the start of 2016.
“We had $714,000 cash on hand," explains Auditor Richard Mallonn. "But, we had outstanding encumbrances of $679,000, which leaves us with a carry-over of $35,000, which just doesn’t meet the city’s expenditures and operations for 2016. Once the income-tax revenue starts coming back in, the city will be fine. It’s just a matter, more or less, of timing.”
City Council approved a loan of $2 million from the City’s Enterprise Fund to the General Fund. It will be paid back, with 1 percent interest, by June 1st.