Gloucester Twp. Council May Borrow $53M Due To Tax Uncertainty

GLOUCESTER TOWNSHIP, NJ — Gloucester Township Council will consider a consent agenda resolution to borrow $53 million when it meets Monday night. The meeting is closed to the public due to ongoing regulations related to new coronavirus, there will be online participation for members of the public.

“Due to the high level of uncertainty surrounding the township’s receipt of tax and miscellaneous revenue streams, the township desires to authorize the issuance of its tax anticipation notes in one or more series from time to time in an amount not to exceed $53 million,” officials said in the resolution.

Before the sale of any notes, the township’s chief financial officer will prepare a cash flow forecast with respect to the township’s budget requirements, showing that the township anticipates a cash flow deficit, pending the receipt of taxes and other revenues.

The tax anticipation notes will be filed in accordance with applicable law and will be subject to review by the township’s professional advisers to provide the money needed to meet the anticipated deficit.

Under state law, the township is permitted to borrow 30 percent of the tax levy plus 30 percent of the amount of miscellaneous revenues received in cash in 2019, which comes out to $53,120,035.92, according to a note from the chief financial officer included in the agenda packet.

The item is among eight items on the consent agenda, which also includes the extension of the temporary budget and refunds from the recreation department for its spring pre-K program due to the outbreak of the coronavirus.

There are no ordinances set for first or second reading. The meeting begins at 7:30 p.m. The township provides instructions on signing in to YouTube, both using Gmail accounts and for those who don't have Gmail accounts. Instructions can be found here. The dial-in number is 425-436-6374. The access code is 624323.