OLIVE BRANCH, Miss. (AP) - Olive Branch elected officials will borrow $1.1 million to meet the city's financial obligations until residents pay ad valorem taxes after the first of the year.
The Commercial Appeal reports it's not uncommon for cities to take out tax-anticipation loans. Officials may borrow from a bank or from their own city, from natural gas or water funds.
Horn Lake took out a tax-anticipation loan in 2007, and Southaven did it about two years ago as the national economy started to slide into recession.
Olive Branch Mayor Sam Rikard said the money will be repaid with interest after the bulk of ad valorem taxes -- taxes on real and personal property such as land, buildings and cars -- are paid the first few months of 2011.
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