Argo’s city council has authorized Mayor Paul Jennings to borrow as much as $100,000 to cover its payroll and operating expenses for the remainder of the year.

The action came as Jennings presented council members with budget projections for the next fiscal year.  “I don’t like the idea of borrowing money, because that seems like we’re just making our hole deeper,” he said, “but if you look at our numbers, things are picking up.  It’s slow, but we’re getting better.”

The numbers include an estimated total revenue of $774,779 for the 2010-11 fiscal year, which begins Oct. 1.  Slightly more than $350,000 is earmarked for the city’s fixed expenses, with the remaining $424,464 going to the fire and police departments.  

Argo expects to receive $143,000 from property taxes, but Jennings said receipts wouldn’t begin to come in until early November, too late to be of any help in relieving the current financial shortfall.

“We have been offered help, though,” he told the council, recounting a recent mayors’ association meeting at which he spoke with three officials from a neighboring city who “asked if there’s anything they can do to help.  They were talking about a loan, not giving us anything; but I didn’t see that coming.  I appreciated it, because they’re having problems too.”

Whether the loan is obtained through another municipality or a traditional lender, the mayor added, “rest assured that it will be at the lowest interest rate possible.”