East Providence Lining Up Its Credit
Webster Bank has indicated that it wants to work with East Providence on tax-anticipation notes (TANS) for the new fiscal year.
Webster Bank has indicated it wants to work with East Providence to issue tax-anticipation notes (TANS) the city will probably need to cover expenses over the first couple of months of the new fiscal year.
Finance Director Malcolm Moore made that announcement last Thursday at the bi-weekly Budget Commission meeting.
“There is no official commitment,” Moore told the commission.
But a letter to him from Webster Bank indicates that the bank is willing to start the process of issuing the TANS with a closing on the notes by no later than mid-December.
City Manager Peter Graczykowski, a Budget Commission member, said the city will now determine the cost of the notes before requesting an advance on its state aid. He has been pushing for the city to get an advance to cover operating expenses while taxes are collected.
Budget Commission member Michael O’Keefe preferred that the city get a commitment for TANS before going to the state for an advance on its aid. This now seems likely with Webster Bank interested in granting whatever line of credit the city needs to cover expenses while taxes are collected.
“We still must go through the official process,” said the city manager. “A document that lists the amount and terms of the TANS is needed.”
The Budget Commission meets again on Nov. 29. It expects to know the terms of the TANS and what information it will need to request an advance on its state aid by that meeting.