Split council passes Tax Anticipation Note

BENNETTSVILLE— Bennettsville City Council held a special called meeting Tuesday night where the passage of a tax anticipation note [TAN], or a short-term loan provided by a financial institution or tax preparation company against your expected federal, or sometimes state, tax refund was discussed and voted on. Council previously held a second reading on Ordinance 26-10-001 Tuesday, November 4. Bennettsville is looking to borrow approximately $1 million against the city’s tax return.

Following a lengthy debate, council voted to approve the motion. Councilman William “Bill” Jennings, and Councilwomen Caraline Harpe and Wanda Weaver voted against the motion approving the passing of TAN.

Due to the contentious nature of council’s Nov. 4 meeting, the Bennettsville Police Department provided an increased presence for Tuesday’s meeting, which was held at the Bennettsville Community Center in anticipation of a high volume of attendees.

“TAN is a short-term loan—that we need, regarding while we are waiting on taxes to come. We have roughly $28+ million dollars… $28 million dollars is in the bank,” City Administrator William Simon Jr. announced. He later explained the city is asking for the loan because Bennettsville’s revenue has remained the same, while its expenditures have increased.

“While those expenditures are steady every single month, some of your revenues are not. Some revenues that are steady are our utility revenues. We purchase power and we sell it, you buy it, and it comes back into the house,” Simon said.

The city administrator provided council with an example to illustrate the city’s needs.

“We have that projected revenue from business licenses imbedded in our budget to support 12 months of saving, but you don’t need that money until April. Same with gas, that is legitimate revenue from our gas service. When do people use gas? You use it in the summer, and you use it in the winter, so that revenue is projected to support those same 12 months of spending. Same with taxes. Taxes are a huge revenue for us. Last year, I want to say about, like $3.9 million. We have collected some so far. But when are taxes due? Taxes are coming in equally every month into our city to support equally those 12 months of spending—you’re not,” Simon explained.

Administrator Simon went on to say why he feels passing the Tax Anticipation Loan is a positive move for the City on the Move.

He said, “That is why passing Tax Anticipation Loan is a real thing. It is a tool that governments have been using for decades. It is why our ordinance has a section in it for borrowing. It is why the county and about five or six other counties and cities are doing this right now.”

Weighing in, Councilman Cy’Heim McRae said, “Even though it’s been a few weeks, it seems like a long time coming. If our city was in trouble, we supposed to sit here and let the ship sink? No. I don’t think so. So, we have to do what is best for the city.”

Councilwoman Wanda Weaver renewed her position of having asked for financial documentation from the city administrator regarding the potential TAN in the past, but reiterated she still has not received the requested documents from the administration.

“I don’t have any numbers. I have to see what is going on. I am not saying anybody is saying an untruth or anything like that, but I need documentation to see what I am voting on, especially a million dollars,” Weaver said.

Weaver added that staff votes were discussed during council’s first meeting.

She said, “I don’t want to do staff votes, but this is a business, and business is business. I asked for a meeting so that we could all get together and go over these votes and make a decision about the best way to do it. I haven’t had that meeting either.”

Councilwoman Caraline Harpe also expressed dismay at what is perceived as a lack of promised transparency from the city’s administration. She cited this as one of her main reasons for stating that she is against voting for TAN.

Harpe said, “I am against the TAN for a few reasons. We discussed information I requested multiple times to receive the minutes from the first reading of the TAN, I have yet to receive that, and I also made several requests for specific information regarding the need for the TAN and numbers and documentation to back that up, and I haven’t received that as well. I think it is very important to be well informed and to have documentation. We discussed transparency, we discussed inviting citizens to come to city hall, and to learn about what is going on— I appreciate you guys coming in and asking questions, I have asked the same questions and have yet to get those answers.” She added, “When we talk about transparency to citizens, council also wants the same transparency— we want answers to our questions. We want to receive documentation. It’s not being done.”

Summing up her position, Councilwoman Harpe said she was loath to move forward without adequate information or a plan in place.

Split council passes Tax Anticipation Note

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