LEBANON, Tenn. -- As information technology director for the city of Lebanon, Mike Collinsworth is used to solving hard problems. But after depositing his paycheck from the city, even he couldn't figure out why it bounced.

"I checked online with my bank, Suntrust, and sure enough, I was $836 to the negative (Tuesday) morning," he said.

It turns out that 204 of 300 city workers in Lebanon, including those in the fire department who tried to cash or deposit their paychecks Friday, are getting word from their banks that there are insufficient funds in the city's account.

Some employees said they'd already paid bills, expecting the money would be available.

"For every transaction that comes in that's a returned check or an overdraft fee, that's $35 or $40 in fees," said Collinsworth.

Russell Lee, Lebanon's commissioner of finance, said the city certainly has enough money in the bank to cover payroll. He said the bank the city uses, Bank of America, made the mistake.

"I guess you'd call it a glitch," Lee said. "There was some problem in their processing system, and it effectively returned part of the checks that had been deposited Friday. They don't know why it returned some, didn't return others."

In a letter, a Bank of America executive explained they recently implemented a new system to run Lebanon's payroll and said it did not work as anticipated and promised this would not happen again.

Bank of America informed other banks to redeposit the bounced checks and this time, they should go through.

"They're going to redeposit and run it through (Thursday); that's the earliest they can get it back, so at the moment, I'm still at $836 to the negative in my account," Collinsworth said.

Bank of America plans to cover any of those overdraft or returned check fees incurred by any city workers.

Because of the glitch, Lebanon's mayor is making plans for the city to switch its account to a local bank as well as offer direct deposit for employees.