At the current rate, Montebello will run out of money in October. Because of their fiscal instability, they’ve found that the public bond and borrowing markets are closed to them. Instead, the city has approved turning to the private market.

Their hopes are to secure a 9-month loan for $3.9 million. The cost: $350,000.

The loan is necessary to ensure the job security of the entire city’s workforce. In April, the former city manager resigned because the city council was unwilling to make difficult spending cuts that would have resulted in 45 of the city’s staff being laid off. Instead, the interim city manager has proposed a different budget, which includes a $3.9 million loan, protects the jobs of all employees, and banks on a hearty national economic recovery.

From the Whittier Daily News:

The city’s leadership is pinning its hopes for financial stability on acquiring a $3.9 million private loan.

Montebello will run out of cash in the fall if staffers can’t convince a private lender to let the city borrow the money, Interim City Manager Larry Kosmont said.

“I think that you will have to make very immediate cuts by October or November, because we won’t be able to make payroll,” Kosmont told the City Council of the importance of acquiring a private market loan.

Read the full article here.