The City of Brazil is borrowing $500,000 due to this year's delayed tax draw from the State.
The City Council opened bids and agreed to borrow the money from First State Bank at 2.99 percent interest.
"That's a pretty good rate," Mayor Kenny Crabb said this morning.
The money must be repaid before the end of this year.
In the past, the City has advertised for $180,000 but found it necessary to borrow much less. Last year, the City borrowed and paid back $50,000. Due to the State budget crunch, the early tax draw has been delayed, causing consternation to nearly all government agencies depending on the draw.
In January, the mayor said the city is expecting $1.2 million in taxes, but the tax draw could come as late as September.
This year, the City will borrow 10 times last year's amount -- $500,000, to be used to pay bills until the tax draw comes in to the city treasury.
In other business, the City Council:
- Approved the Meridian-Forest Avenue Historical District's request to place information signs on streets entering the district.
- Awarded a mowing contract to Three in One Lawn Service for the city's cemeteries.