Updated 09/04/2012 09:52 PM
Utica moves forward to pay school district back
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UTICA, N.Y. -- Utica's finance committee has cleared the way for a deal to go through to repay the city school district more than a million dollars it is owed.
The school district had expected to receive the property tax revenues last year, but due to financial issues, the city was unable to make that payment. Both the city and the district have been working together to make it right.
In a proposal created by city council members and approved by the district, the school will borrow the money needed, because they have a better credit rating. The city will then pay them back in full over the course of one year, including interest and fees.
"Eventually we would have to pay this money either way. State statute says we have until two years after the state taxes are due to pay the school district. Historically we paid them on that particular given year, which is why we're here now too," said City Councilperson Joseph Marino.
Marino says the city didn't give the school district enough time to plan for this change in procedure, which is why they are reimbursing their loan payments.
Utica's full common council will vote on the proposal Wednesday evening.