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City borrowing from gas fund to meet obligations

OLIVE BRANCH — Olive Branch officials will borrow $1 million from the city’s natural gas fund to meet financial obligations.

Mayor Sam Rikard tells the Commercial Appeal the funds would be repaid with interest once property tax collections come in.

It’s not uncommon for cities to take out tax anticipation loans. Officials may borrow from a bank or from their own city.

Olive Branch aldermen authorized loans of up to $2 million last year. Rikard says only about $450,000 was borrowed.

Officials expect the money as property taxes paid by residents are filtered through DeSoto County to the city through April.

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