MUNSTER | The Town Council has authorized borrowing $9.7 million in tax anticipation warrants on an as-needed basis to pay bills.

The first sale is for $1.6 million to cover debt service fund payments due this month, according to Patricia Abbott, Munster accounting supervisor.

"We got authority for flexibility because we would not get a property tax draw before our first debt service bill is due in June," Abbott said.

Bids were due last week.

"The banking community will hopefully give us very favorable rates," Abbott said.

Clerk-Treasurer David Shafer said the warrants were needed because Lake County will not issue the first installment of 2007 to timely pay 2008 property tax bills.

For expediency, the council voted to suspend the rules and adopt the ordinance on first reading at a recent council meeting.

According to the ordinance, Munster does not expect to issue more than $10 million in tax-exempt obligations within the year.

The short-term loans would cover about $8 million necessary to honor debt service obligations, and meet payroll and vendor invoices, they said.

In December 2007, town leaders issued tax anticipation warrants for $7.09 million covering a debt service and two operating funds.

The three accounts are to be paid off June 30, Abbott said.