City borrows money to cover payroll expenses

by

Published: January 4,2012

Tags: budget, loans, municipal government, salaries, wages

NATCHEZ — The city of Natchez has borrowed $350,000 of its $400,000 tax-anticipation loan since December to help cover payroll expenses.

City Clerk Donnie Holloway tells The Natchez Democrat the city originally budgeted for the $400,000 tax-anticipation loan, but he said the city would not need the additional $50,000.

The Natchez Board of Aldermen approved taking out the loan for this fiscal year in early October.

The city received the loan, which is distributed in chunks as needed, from Trustmark National Bank at a 1.84 percent interest rate.

Holloway said the loan is needed to meet financial obligations until the city receives ad valorem taxes.

He said the loan is used solely to cover the city’s payroll for employees. He said $255,000 is paid out for payroll twice a month.

[RSS Feed] [del.icio.us]



To sign up for Mississippi Business Daily Updates, click here.

POST A COMMENT

 

Twang & Tourism: The Country Music Trail

Our annual "Come See Us" magazine offers ideas for spots in Mississippi ranging from golf to culture to history to food. Click the photo for ideas, stories and access to the digital edition of this year's magazine.

FOLLOW THE MBJ ON TWITTER

Top Posts & Pages

%d bloggers like this: