BAY ST. LOUIS, Miss. — Bay St. Louis’ city council has voted to borrow $85,000 from the city’s reserves to pay bills for October, and they’ll have to borrow more to get through the end of the year.
Mayor Les Fillingame said Friday that even though the new fiscal year just began, it’s not unusual for cities to dip into cash reserves.
“This is the time of year when revenues are the lowest. It’s one of the necessary evils at the end of one fiscal year and the beginning of the next before the property taxes roll in,” Fillingame said.
Fillingame said property tax payments typically pick up in January. The revenue shortfall from October to December is about $200,000.
WLOX-TV (http://bit.ly/2daMyr2 ) reports Fillingame asked the council to transfer that entire amount now, but the council decided to borrow month-to-month instead.
The council also voted to transfer $266,000 from its reserves to pay Meranto Construction for work on the Old Spanish Trail sidewalk project. Fillingame said that money will be reimbursed by the Mississippi Department of Transportation, but the bill needed to be paid now.
Before these transfers, Fillingame said the city’s cash reserve account had a balance of a little less than $1,000,000.
“This will be very temporary,” Fillingame said. “That’s what your reserves are for, to supplement the needs of the operations in times when cash is tight.”
Information from: WLOX-TV, http://www.wlox.com