City of Greenville hoping to Utilize New Line of Credit Spending
In a unanimous vote the Greenville City Council has approved the city take on a $500,500 line of creditMayor Jae’Ques Brown presented the financial option at October’s City Council meeting. Mayor Brown stressed that the line of credit is simply a fail safe option for any future financial needs of the city which can’t immediately be covered by revenue income or budget expenditures. He also made it clear that the line of credit is not a bond and will only be paid back if used.
“This will only be for 24 months and after 2 years we can choose to renew it. Our goal is to never use it. Our goal is not to use the line of credit but we would like to have it just in case there is a moment where our operating expenses are just for instance, says Mayor Brown, we have expenses that are due one week but our revenue that comes in monthly doesn’t come in until the next week if we have to utilize our line of credit it gives us the opportunity to do that”.
If used the line of credit will be paid back quarterly at a 7% interest rate.
