OAKRIDGE, Ore. (AP) — A $420,000 budget gap has forced the city of Oakridge to turn to an Oregon bank for a bailout to avoid a financial collapse.
The Register-Guard reports that City Manager Gordon Zimmerman announced Wednesday at a Lane County Board of Commissioners meeting that Siuslaw Bank has agreed to grant the city a six-month property tax anticipation loan for $500,000.
The loan would solve the immediate cash flow problem for Oakridge that has resulted from the still-unexplained budget gap while allowing city officials to pay back the loan after Nov. 15 when they receive the bulk of their annual property tax revenue.
Earlier this month, city officials revealed they could not explain the $420,000 budget shortfall. Audits by external accountants and an internal review have since been launched.
Information from: The Register-Guard, http://www.registerguard.com