Board approves working-cash loan resolution to cover early-year insurance costs
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Summary
The board approved a resolution allowing the county to borrow from its working cash fund to pay insurance premiums due at the start of the year, with the requirement that the loan be repaid within the same tax year.
The Livingston County Board approved a resolution Jan. 16 authorizing a working-cash loan to cover insurance premiums that come due at the start of the year.
A committee presenter explained that by statute the county may borrow from the working-cash fund and must repay the loan in the same tax year once property-tax revenues are collected. "This fund has been set aside specifically for this reason," the presenter said, explaining the loan is an annual practice to bridge timing between insurance payments and property-tax receipts.
The motion to approve the resolution was seconded and passed on a roll-call vote.
Next steps: the county will draw the working-cash loan as needed and account for repayment when taxes are collected later in the year.