By The Associated Press
OLIVE BRANCH, Miss. (AP) — 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 (http://bit.ly/WqhDnF) that the funds would be repaid with interest wants 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.