Albany Borrowing $10M
The city of Albany is preparing to borrow $10 million on Wall Street to pay employee salaries and other expenses in the final months of the year, the Times Union reported.
Revenue anticipation notes will be issued on Nov. 24 and paid back on Feb. 24 to fund basic operating expenses. The short-term borrowing comes as city officials negotiate a $258 million budget for next year.
City Spending Plan Faces Rising Deficits
The current spending plan is expected to fall millions of dollars short of revenue estimates. City data shows this year’s deficit stands at $22.18 million, with a projected deficit of $33.3 million for 2027.
“The city is broke,” Common Council member Deirdre Brodie said in an Instagram video about the short-term borrowing plan. Brodie questioned why officials traveled to Puerto Rico for the Somos conference while the city needs a payday loan to pay 1,400 city employees right before Christmas.
Mayor Dorcey Applyrs defended the trip in a prepared statement, saying she was working to strengthen relationships with state officials to manage major fiscal challenges. Her staff stated she used a mix of campaign and personal funds to pay for the trip.
Treasurer Warns of Necessary Borrowing and Bond Downgrades
City Treasurer Darius Shahinfar said he warned lawmakers for months that borrowing would be necessary by year’s end. He described Brodie’s statements as disingenuous, noting that everyone knows the city’s financial situation.
Shahinfar added that while reserve funds covered past cash-flow problems, that money is gone. However, he stated that claiming the city cannot meet payroll is a disservice to workers.
The debt-security document warns of severe financial difficulties that could affect the marketability and value of the notes. S&P Global Ratings downgraded the city’s bond rating from “A+” to “A” in July.
The Finance Committee is currently wrestling with a 2027 budget plan that requires at least $8 million in cuts. Discussions have included additional layoffs, scaling back the Summer Youth Employment Program, and canceling the Tulip Festival.
