ORANGE BEACH, Ala. — After problems with the county and its inability to distribute city tax money on time, the city of Orange Beach made a quick decision to pull money from the sewer’s reserve fund last week.

“We don’t know when we are going to get our property tax money,” Orange Beach Mayor Tony Kennon said. “It’s supposed to be $3.7 million.”

Because the city has been facing economic difficulty, a hiccup in the cash flow has left no choice but to tap into a reserve fund.

City finance director Clara Myers said county tax notices, to collect taxes from county residents, was not mailed out on the regularly scheduled time.

“So we did not get the $500,000 we normally get in December and we did not get the $1 million we should have got in January,” Myers said. “We came upon a shortfall in cash to be able to operate.”

Kennon explained only $46,000 came in December — $454,000 less than expected.

The council voted Thursday at a special called meeting to withdraw money from the sewer reserve fund to pay city expenditures by appealing an ordinance that left the fund untouched.

The reserve fund, with a $6.2 million balance, was released indefinitely, until the county money has come in.

“That’s essentially what the sewer emergency fund is for,” Kennon said. “In our opinion it’s not just for the sewer. It’s an emergency fund.”

About $350,000 was needed to back pay checks and operational expenses that were paid last week. The council voted to take out $738,000 to help with immediate future bills that will be coming before the county gets the city their money.

The county has requested a Jan. 26 deadline, according to Myers.

“The county has a back log that they don’t get the mail opened and the checks deposited, because of the sheer volume that comes in, for a while,” Myers said. “Until they are able to post their money they can’t send it to us. So it’s all dependent on how far behind schedule they run.”

Other income this month, $1 million in business licenses and $700,000 from Baldwin EMC, should allow the city to free up some cash.

The city will pay back the money once the ad valorem taxes are received from the county.

“There’s no structured plan; we are just going to pay it as we can,” Kennon said. “However, there is an emphasis on getting it paid back.”

Revenue Commissioner Phil Nix said Tuesday morning the city would be receiving a $209,000 check this week and said the county is sending money as it’s collected.

Nix said the hold up was caused when the state was late turning in its new property tax values. He also said appeals of those values, the majority of which have come from Gulf Shores and Orange Beach, have resulted in the delay.

The bulk of money owed to Orange Beach should come in at the beginning of February and will be close to last year’s figures, according to Nix.