County authorizes borrowing money

The Orange County Commissioners’ Court recently voted to authorize the issuance of as much as eight million dollars in Orange County Tax and Revenue Anticipation Notes, Series 2018. The vote, taken two weeks ago, authorizes the Orange County Treasurer, Christy Khoury, to borrow up to $8,000,000 to tide the county over until 2018 Orange County property tax revenues start arriving.

The court anticipates that the Treasurer will likely have to borrow the minimum draw on the loan of $2,000,000. The interest rate on the loan will be 1.2% over Libor, which is the interest rate that banks use when lending to another bank, or a likely total 3.55% interest rate during the week that the Court authorized the Notes.

Orange County Commissioners’ Court was informed during the first week of October that despite the fact that it was starting the 2018-2019 fiscal year with a fund balance of $10,684,801, the County could only spend some $4,922,995 of that money for salaries and day-to-day operations of the County. The rest of the money in the fund balance, they were informed, is restricted funds. When the county’s attorney, Denise Gremillion, informed the court about this shortfall she explained that, “expenditures of restricted funds for purposes other than what the funds are intended is inappropriate regardless if the funds are later replaced.”

 

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