Albany city leaders announced the approval of a $10 million Revenue Anticipation Note (RAN) to prevent missed paychecks for municipal employees amid a short‑term cash‑flow shortfall. Treasurer Darius Shahinfar told CBS6 Albany that the loan was first proposed in the city’s second‑quarter financial report, which highlighted an annual cash‑flow gap that typically appears toward the end of the fiscal year.
“In past years we’ve had a fund balance and balances to help tie us over until January when property tax revenue comes in,” Shahinfar said. “2016 we didn’t have enough. We issued a RAN this year because we don’t have those balances left, we’re issuing a RAN.” The three‑month note will be repaid with sales‑tax revenue expected to be collected by early 2027, and the city estimates issuance costs and interest at roughly $100,000. The repayment is not included in the FY 2027 budget process.
Mayor Dorcey Applyrs emphasized that state assistance helped avoid a loan earlier in the year. She responded to criticism that the city was “broke,” calling the language “poor choice of words” and stressing transparency about the city’s financial challenges. “We know that this has caused some concerns among our workforce, and if they will get paid,” Applyrs said. “We have been here before in terms of cash‑flow issues around this time of year. Nothing new, and we’ve been very transparent this administration about the city’s financial challenges, and we will continue to manage it.”
Albany Common Councilmember Deirdre Brodie (6th Ward) raised concerns after reviewing the treasurer’s Q2 report, noting that the rapid shift to borrowing was “shocking.” Brodie told CBS6 that the report indicated the city could avoid market borrowing with proper cash management, and she shared a budget timeline that highlighted the sudden change.
When asked about the possibility of future borrowing, Shahinfar said it remains a tool the city may use if necessary, emphasizing responsible budgeting, additional revenue, and potential cuts. “You basically have to budget through it. You need more assistance from partners, more revenue, budget cuts,” he explained.
Applyrs also addressed questions about her attendance at the SOMOS legislative conference in Puerto Rico, clarifying that the trip was not funded with taxpayer dollars and underscoring the importance of state relationships for Albany’s future support.
What’s next: The city will monitor cash‑flow through the remainder of the fiscal year and begin repayment of the RAN with sales‑tax collections expected in early 2027. Officials said they will continue to provide updates to residents and city employees as the repayment schedule progresses.
Sources: cbs6albany.com
