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Instead of working with a private lender, the city has approval to use Monmouth County as a lender for the city’s tax anticipation notes, according to Richard Gartz, the city’s chief municipal finance officer.

The deal through the county allows the city to save a little over half of a percent interest on each note, he said.

The city receives state aid August 1 of each year, which leaves cash flow debts the first seven months of the year. The tax anticipation notes allow the city to free up some cash flow to cover the first half of the year, Gartz said.

Last year, Bank of America bought two of the notes at 1.6 percent interest each. This year the county has offered a 1 percent interest rate, said Gartz.

In addition to saving money, the notes will clear the city’s balance sheet by the Dec. 31 deadline. Normally the city had a tax anticipation note that carried over to the following year, which won’t happen this year, he said.

“This is the first time in the last four to five years [the city] won’t have it on the balance sheet, so it is a very good thing,” said Gartz.

“It’s a win-win situation,” said City Manager John “Jack” Kelly. “The benefit stays with Monmouth County taxpayers and the city borrows at less than the percent they would with a commercial investor.”

Members of the Asbury Park City Council will vote this evening on a resolution to authorize the issuance of not exceeding $7 million in tax anticipation notes for the 2014 fiscal year.

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