Natchez borrows $245,000 for tax anticipation loan

Published 12:04am Saturday, December 15, 2012

NATCHEZ — The City of Natchez has borrowed $245,000 in tax-anticipation loan funds, and City Clerk Donnie Holloway said he does not believe the city will need to borrow more.

The Natchez Board of Aldermen voted to take out a $300,000 tax-anticipation loan in October to fund city operations until the city receives tax revenues. Holloway said the loan is being used for payroll.

The loan, which has a 1-percent interest rate, must be paid back by March 15.

Mayor Butch Brown said he has no problem with the city taking out a tax-anticipation loan since it is paid back in the same fiscal year.

Brown said, however, he would like to see the city get to a point where it is operating strictly on its cash flow and does not need tax-anticipation loans.

To get to that point, Brown said, the city is working to sell surplus property, which can be put back on the tax roll and generate revenue for the city.

The city recently sold 15.4 acres of property behind the Margaret Martin Performing Arts Center to the Worley Family Trust for $192,000. The sale of the property is contingent upon approval of the Mississippi Department of Archives and History, which must have the opportunity to conduct an impact study on the property.

The city, Brown said, is also expected to sell Brumfield Apartments to New Hope Missionary Baptist Church next week. The church plans to provide affordable housing at the complex.

Brown said the city is also assisting developers in opening back up the old general hospital to residents.

The city also has new industrial prospects, Brown said, including a health-care related industry that Brown said should begin building a facility next year. Brown declined to comment on the specifics of the industry because of a confidentiality agreement.

Grants will also be important, Brown said, to helping improve the city’s cash flow.

“They’re getting harder and harder to get in these tough times, but we don’t shut down when the fountain runs dry, we just have to put more water in it.”

 

  • http://www.natchezdemocrat.com khakirat

    Maybe these local leaders will wise up in the Miss-Lou that they need to make cuts to have a community fund when the gray clouds come over to have moneys to get thru the issues!! It simply shows to much spending and wast of moneys of the taxpayers that they possible would do different if it was their money and bills!!

  • Anonymous

    Borrow, borrow, borrow, grants, grants, grants.

  • Anonymous

    I have never understood why government on all levels expect people to follow them when they themselves do not follow their own advice….. from the president on down to local officials, they always tell the people to cut back and buckle down and what and how to do but they themselves seem to always be exempt…. I have always thought it better to lead by example than by mouth. It is rather hard to expect people to take them serious about cutting back when they themselves are out spending money like it grows on trees and taking vacations that cost more than most will see in their lives….I keep praying we will get a good group of people in office that has some common sense and is aware of the hardships the taxpayers face each day and truly understand those hardships not just give lip service like the majority do now. however that has yet to happen, I just pray we can endure the decisions they make and come out as unscathed as possible.

  • Anonymous

    GO-HEAD-ON-BROWN. ” WE DON’T SHUT DOWN WHEN THE FOUNTAIN RUNS DRY, WE JUST HAVE TO PUT MORE WATER IN IT ” LOL, BROWN IS NOT ONLY WALKING-THE-WALK, BUT HE’S TALKING-THE-TALK. WITH ALL OF THE EXPERENCE YOU HAVE, I KNOW YOU CAN MAKE THIS CITY SHINE. KEEP ON PUSHING BROWN, WE ARE BEHIND YOU ALL OF THE WAY. WE DON’T MINE ADDING MORE WATER TO KEEP THAT FOUNTAIN RUNNING.

em