Sunday, January 11, 2009

Reserve tapped to pay bills - al.com

Reserve tapped to pay bills - al.com: "ORANGE BEACH — Facing a cash crunch attributed to late-arriving property taxes, the City Council voted during a special Thursday meeting to dip into its sewer reserve fund to pay employees and bills this month.

City leaders plan to withdraw $738,000 from the $6.3 million fund that was established early last year. Using mostly proceeds from sewer tap sales, the fund was created to finance a year's worth of sewer operations in the event of an emergency.

The sewer reserve fund is separate from a $6.6 million emergency reserve account that was created in 2007 to cover day-to-day expenses. But like the general emergency fund, the sewer reserves require a public hearing and the approval of five council members before it can be tapped."