City takes out $1M tax anticipation loan

Published 10:57 pm Tuesday, October 10, 2017


NATCHEZ — City leaders approved a $1 million, tax-anticipation loan Tuesday to provide operating cash for the city until property taxes are received in January.

During the finance portion of the Natchez Board of Aldermen meeting, Interim City Clerk Megan Edmonds said two banks submitted quotes with identical rates; both Concordia Bank & Trust and Delta Bank offered interest rates of 2.15 percent.

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Edmonds said after consulting with the Mississippi Office of the State Auditor, she recommended the city go with Concordia Bank & Trust based on the reasoning that Concordia is closer in proximately to City Hall.

Natchez Mayor Darryl Grennell called using the bank’s proximity — as the state auditor’s office suggested — an “interesting formula” for deciding between two identical quotes, while Ward 3 Alderwoman Sarah Smith also seemed to find that method strange.

Edmonds also said she inquired about whether the city could just decide based on who submitted a quote first, which was also Concordia Bank & Trust.

City Attorney Bob Latham suggested the aldermen attach both of those justifications should the board decide to go with Concordia.

The loan must be repaid by March 31, 2018.

The board unanimously elected to approve the loan at Tuesday’s meeting. Ward 5 Alderman Benjamin Davis was not present.