Mayor says Shamokin won't run out of cash this month as expected
SHAMOKIN - The city's mayor says Shamokin won't run out of cash this month as had been predicted.
There's enough money in the city's general fund to make it through August and perhaps September, said Mayor William D. Milbrand. The general fund, the city's primary account, had approximately $76,000 Monday.
Shamokin is awaiting receipt of a $1,163,500 interest-free loan through the state's Act 47 program. The funds will be used to pay more than $811,000 in unpaid bills from 2013 and keep the city afloat through the end of 2014.
"Any day now," Milbrand said when asked when the loan money would be received. "We're waiting for the state to transfer the funds."
A new bank account had been established last month in anticipation of the loan, which is to be repaid over 10 years.
Shamokin was projected to be out of cash by mid-August, according to an Early Intervention Report prepared by the city's financial advising firm, Financial Solutions. It's predicted that the city will finish 2014 with a cash shortage of $350,000, or roughly 13 percent of 2014's projected revenue of $2,306,138. It threatens the city's ability to meet payroll, bills and debt payments.
Ryan Hottenstein, of Financial Solutions, has visited City Hall weekly since late July towards creating a long-term financial recovery plan.
Shamokin is the 21st active member of the state's Act 47 recovery program for financially distressed municipalities. Apart from the loan, Shamokin will receive preference for state grant programs and will consultations from financial, legal and operations experts.