City of Albany Confirms They Are Broke

By now everyone has heard about the debt problem that the city of Albany is facing. It was reported over the summer that Albany was over $50 million in debt. The mayor is adamant that this is not her debt and is a problem that she inherited from former administrations. It's a huge problem, especially considering the mayor's plan to "turn the lights back on" in a city where nightlife has seemingly died (mostly). The bigger question that I have is, are we broke?

Over the weekend I saw a video from Albany Common Council member Deirdre Brodie, who represents Albany's ward 6. In that video she said she accidentally uncovered that Albany was seeking a loan because they would not be able to cover the city payroll.

I have to give her credit for sounding the alarm on this situation, because it appeared that it was not going to be public knowledge. This of course also coming out after the mayor proposed a property tax increase as well.

She explained that Albany applied for a RAN, which is a Revenue Anticipation Note. These are short-term loans that local governments can apply for to cover short term finances when they are going to fall short. The amount requested was for $10 million. Does that then get added to the debt total that is already a huge problem for the city?

Is the City of Albany broke?

I think the answer is yes. Their cash seems to be totally dried up. The mayor's office confirmed this application for the RAN, and the city treasurer told CBS 6 that they've done this in past years to make payroll for the city employees until revenue from property tax starts coming in at the end if January. They say the plan is to pay it back via revenue made from sales tax.

As a resident in the city I am both disgusted and concerned. I am not paying a dime more in property tax because for the money I'm paying I'm not seeing any investment in my neighborhood. This city has a major problem, and passing it on to the people who live in the city, or outside the city, should not be the solution.