The City of Terre Haute is taking out a $5 million tax anticipation loan over the next three years.
The city council passed the measure at Thursday evening’s meeting with a 3-5 vote. The city has taken out one-year tax anticipation loans four times in the past five years.
Mayor Duke Bennett says the council did the right thing in voting for a three-year, instead of a one-year, repayment plan for the loan.
“I applaud the council, those who voted for it last night, for making the right business decision in to order to keep the city up and running like we need it to, and at a minimal cost to the taxpayers,” he says.
Bennett says the three-year repayment period will cost the city less money, and put them in a better position to generate revenue and avoid taking out more loans in the future.
But some council members remain concerned about the repayment period.
Councilman John Mullican says the longer repayment period hinders transparency and accountability, and could push the responsibility of repayment onto a future administration.
“It’s effectively kicked the can down the road. Because it won’t be revisited until we have another election, where there’s a new group of people on the council and may or may not be a new administration,” he says.
The council also passed 2014 budget reductions and a measure that calls for licensing businesses that sell tobacco products.