Riverside takes out loan to cover payroll
by KENNY FARMER
Nov 08, 2012 | 2101 views |  0 comments | 12 12 recommendations | email to a friend | print
RIVERSIDE – The City Council called an emergency meeting Wednesday evening to authorize Mayor Rusty Jessup to take out an emergency loan to cover the City’s payroll costs.

Jessup said the problem was caused by a delay of the City’s Ad Valorem tax check, which he says usually arrives around Nov. 1 of each year.

“This just spun us out,” said Jessup. “So I had to get some money. That’s the only way I know to do it.”

Jessup said the delay of the tax revenue was caused by a “glitch in the system.” St. Clair County Revenue Commissioner Elizabeth Mealer was out of the office for the day Wednesday evening and was not able to be reached for comment.

Metro Bank in Pell City made the 90-day loan to the City in the amount of $25,000.

Jessup said the loan would cover today’s payday and that, upon the arrival of the Ad Valorem tax revenue as well as revenue from the City’s sales tax, that the city would be “fine” when the next payroll expenses come due.

Jessup said that the city will be “back on track” after receiving an additional Ad Valorem check, which usually arrives in December.

“We’re so tight,” Jessup said. “So if anything goes wrong, we’re just hurting. There’s no margin for error. It creates problems for us. It makes it really hard to manage, but we’ve managed so far. We’ll continue to manage.”

Contact Kenny Farmer at kfarmer@dailyhome.com.