ST. GEORGE - The city of St. George is in need of some cash. Tax money has not started coming in yet, so city leaders are looking to take out a million-dollar loan.

However before they get the loan, they must go before the State Bond Commission next week to ask permission to borrow it from the bank.

They're making this move because it has not received any proceeds from a 2 percent sales tax collected within its boundaries and they've not received any money from the city-parish. It will be re-paid, with interest, after tax money starts rolling in.

WBRZ spoke to Jeff Crouere with the Department of Treasury to see if this situation is normal.

"It has been done in the past, but this is a sort of a unique situation. We don't have too many new cities starting up, certainly not the size of St. George, I mean this hasn't happened in a while." Crouere said.

St. George will be the fifth largest city in the state of Louisiana. They have already chosen the bank that would supply the loan, Hancock Whitney.

"Every municipality that needs to borrow money has to go before the state bond commission to get approval. Then our experts dig in, look at the financials and see whether we approve it or not." Crouere said.

WBRZ also spoke to Chris Rials, the Vice Chairman of the Transition District who says the two percent sales tax is estimated at being four million dollars a month. Rials says if St. George is allowed to borrow the one million dollars, the city intends to spend it only as it is needed.

The Department of Treasury says it is confident that if St. George receives permission, the new city will put it to good use.

"We think it's going to be a financial success. The treasurer has met with officials from St. George. It has his approval and we'll be recommending it for approval before the bond commission." Crouere said.

All the paperwork has been sent in. The request will be decided upon at the State Bond Commission's next meeting on July 24.