City borrows money to cover payroll expenses
by Associated Press
Published: January 4,2012
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.
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