Facing yet another cash-flow crisis, Scranton is trying to borrow a $2.75 million tax-anticipation note to pay routine daily bills and payroll.
The city administration has been negotiating with Landmark Community Bank for the TAN, but city council has balked at the bank’s demand that, in exchange for a TAN, the city must back an unsecured $2.95 million loan that the bank gave to the Scranton Parking Authority last year, council members said at Thursday’s meeting.
TANs are fairly routine, short-term loans that municipalities borrow to cover cash-flow gaps until tax revenues come in. However, the TAN dust-up is another example of how little is routine when it comes to the city’s long-standing fiscal challenges and divisions between the administration and council.
City held hostage?