The Dunkirk Common Council has authorized city Treasurer Mark Woods to acquire a Revenue Anticipation Note of up to $5,575,000.

The council approved the move unanimously Tuesday. Woods said the the loan is necessary because Dunkirk is not getting most of its state aid and sales tax receipts until September or later.

“It’s a cash flow situation,” he said. “We have bills that are due before the revenues come in. Those bills need to be paid. So as the revenues come in, we would apply those revenues to repay the loan. It’s a timing issue.”

Woods said the note was considered in 2022 “but we managed to get through without having to do it. But this year, we’re not in that situation. It’s a situation we have to address and we have to do it now. It’s not a question of waiting a week, or waiting a month, or waiting three months.”

According to Mayor Wilfred Rosas, who supported the loan, “Part of the reasons that we are in this is because the city’s been fortunate to be one of the communities that have been receiving awards to beautify our city and take care of some of our infrastructure needs. When we receive these awards, it doesn’t technically mean we receive the funding right away. We have to front these projects with our money, then we get reimbursed.”

Rosas told the council the note should be paid back as soon as possible, and specifically with this year’s anticipated revenue. It must be paid off within 12 months.

“The repayment will come from the receipt of the revenues that are listed,” Woods said. “We do not have to waste 12 months to repay it.”