Brookhaven City Council members approved March 8 taking out a temporary $3.5 million loan, known as a tax anticipation note, to cover current city expenses while waiting for more tax dollars to come in toward the end of the year.

Finance Director Carl Stephens explained to council members last month that the city’s actual fund balance as of Jan. 1 was about $1.3 million while the available fund balance stands at nearly $3.5 million. Cash balance for the city is approximately slightly more than $2.7 million.

Brookhaven policy, however, states the available fund balance should be $4,822,465 and the cash on hand for 120 days for expenditures be $4,822,455.

There should be 120 days cash for operations but he City does not have enough cash, thereby resulting in the need for a TAN, Stephens said.

Cities regularly take out TAN’s in order to cover costs while waiting for tax revenue to come in. That tax revenue then can be used to expire the debt.

Dyana Bagby

Dyana Bagby is a staff writer for Reporter Newspapers and Atlanta Intown.