NITRO, W.Va. - City officials here have opened a $200,000 line of credit with People’s FCU and at local Huntington Bank in case hard-pressed city coffers cannot accommodate payroll in the coming weeks.
City officials said they received a legal opinion from the state auditor’s office that the credit lines were legal. The state auditor said the lines of credit are legal but must be repaid in the same fiscal year.
Officials said they only will use the credit lines if the city cannot meet payroll, and only after depleting a $100,000 emergency fund established last month. Revenue estimates are so weak though, that city officials say they may have to use all three sources of emergency funding.(c) 2008 The Credit Union Journal and SourceMedia, Inc. All Rights Reserved.http://www.cujournal.com http://www.sourcemedia.com
