Natchez aldermen OK $400,000 tax-anticipation loan

Published 12:03 am Wednesday, October 12, 2011

NATCHEZ — Natchez aldermen voted Tuesday to borrow money to meet cash flow needs for the coming months.

City Clerk Donnie Holloway said last week that the city’s budget included a $400,000 tax-anticipation loan needed to meet financial obligations.

Holloway said he was hopeful to receive the loan by November and plans to pay it back by March 15, after the city receives ad valorem taxes.

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The current mayor and board of aldermen have repeatedly said it is their goal to decrease the city’s reliance on tax-anticipation loans, a practice started years ago.

In fiscal year 2007-2008, the city borrowed $1.3 million in tax-anticipation loan funds. In fiscal year 2008-2009, the city borrowed $500,000.

At this time last year, the city borrowed $375,000, but repaid it later that fiscal year.

In other business at Tuesday’s board meeting:

– Mayor Jake Middleton did not attend the meeting because he was out of town. Joyce Arceneaux-Mathis conducted the meeting as mayor pro tem.

– The city and the county are still without an interlocal fire protection agreement.

Adams County Administrator Joe Murray appeared before the aldermen to answer questions regarding the agreement, but the board asked Murray to come back to the next meeting because the mayor was not present at the meeting to discuss the agreement.

4The board adopted a memorandum giving its approval for the application of a $50,000 retail center revitalization grant from the Mississippi Development Authority.

Southwest Mississippi Planning and Development District planner Allen Laird said the grant is used for enhancing retail strip mall centers that are entryways into cities.

Laird said Magnolia Mall is a perfect candidate for this grant. He said he has spoken with the mall owners, and they are willing to go forward with the grant.

The owners will have to supply the grant match funds.

The project will not cost the city any money, Laird said, and all the grant money will flow through the SWMPDD.

-The board met in an executive session for approximately 15 minutes to discuss a personnel matter regarding the Natchez Police Department.

Ward 5 Alderman Mark Fortenbery voted against meeting in an executive session because he said information discussed in the board’s last executive session was out to the public within hours.

-The aldermen approved matching the $18,000 pledged by the county to go toward repairs to the Armstrong Library’s air conditioning system. Library Director Susan Cassagne said the air conditioning stopped working last week.

-Mathis asked Holloway for an update on funds the board approved to match for a grant for renovations to the Margaret Martin Performing Arts Center building.

Holloway said the city will pay $22,000 as a match for funds raised by Natchez Festival of Music organizers.

“I don’t know where the money is going to come from,” Holloway said.

He said he would look into an inter-fund loan to allow money from another fund to cover the match.

-Halloween will be observed on Oct. 31.

-The board recognized Taco Bell as October’s business of the month at the meeting.

The next aldermen meeting will be Oct. 25 at 6 p.m. in the Natchez City Council Chambers.