At yesterday's meeting of the Morristown City Council, City Administrator Anthony Cox once again had to read a letter from the State Comptroller into the Council minutes. This latest letter from the State to Mayor Barile is dated 5/21/10 and confirms that the City can go ahead and borrow $3,000,000 to make debt and other payments. The Comptroller adds that this TRAN (Tax Revenue Anticipation Note) must be repaid by June 30, 2010. [See the April 20, 2010, Comptroller's letter here.]
After granting permission to obtain the loan, the State lowered the boom with very specific monthly reporting requirements and a cautionary reminder that the State could force the City to cut expenses or levy additional taxes to fix the mess. The reading of the letter was met with silence from Mayor Barile and all councilmembers.
You can click once or twice on the images above to enlarge and read the full letter.
Page two includes: "We [the State Comptroller] are requiring that the City submit to the Office of State and Local Finance monthly financial reports (beginning May 2010...) indicating progress on meeting the above requirements, including the maintenance of a balanced cash budget."
The final paragraph: "The Administration of the City and the City Council need to be aware that if there is a failure to comply timely with any of the above requirements, this office has the power and authority to direct the City of Morristown to cut expenditures or to levy additional taxes."