FAQs - Details

Question

Why would the City need interim financing to get through the year?

Answer

Property tax revenues make up the largest portion of monies in the general fund. These funds are collected by the Henry County Treasurer who then issues the City their portion. Spring collection over the past few years has been delayed due to legislation on the State level and State legislation has limited the amount of revenue a city may "carry over" to the beginning of a new year. Both of these factors have made it necessary for cities to obtain interim financing until these revenues are received. The City administration cannot spend more money than is budgeted (appropriated) without approval of the City Council. Any funds obtained must be repaid prior to December 31st of the year they are obtained.