The City of Oak Forest has a new credit line with MB Financial after the city council voted to extend a previous agreement with the bank until Oct. 16, 2013. Previously, the city executed an agreement with the bank in October of 2010 to borrow $2 million during a one-year term.
“This has become routine business in the last few years,” said Colleen Julian, Oak Forest's Finance Director. “That we do need a line of credit for short-term needs.”
Julian said that the city needs access to funds like this during fiscally slim times, and that the money would only be used when absolutely necessary.
“We do experience inadequate liquidity at times, so I just encourage your support,” Julian told the council.
The money could be used in instances such as real estate tax distributions, or when the city's fund balances are insufficient to meet requirements.
This is only the third year in her 15-year tenure with the city that Oak Forest has needed a line of credit, she said.
The agreement between Oak Forest and MB Financial was approved by a unanimous 6 to 0 vote by the city council.