Tri-City Ledger -

By Joe Thomas
Ledger Editor 

Council approves combining two loan amounts

 

July 19, 2018



Having previously voted to combine its two lines of credit at Escambia County Bank and United Bank into one payment, the Flomaton Town Council held a special meeting Wednesday morning to vote on the issue because the exact amount owed on the existing line wasn't approved.

On June 21, the council held a special meeting and approved combining the two lines of credit and having one note at Escambia County Bank. By doing so, it would open up $200,000 lines of credit at both banks. Mayor Dewey Bondurant Jr., told the council at the time it was the best option for the town.

Wednesday, Mayor Bondurant told council members Buster Crapps, Jim Johnson and Lillian Dean that Escambia County Bank wanted the exact figure on what was owed on the lines of credit. Councilman Roger Adkinson and Charlie Reardon were absent from Wednesday's special meeting.

The town currently owes $362,261.32 on its two lines of credit: $193,480.63 to Escambia County Bank and $168,780.69 to United Bank.

Mayor Bondurant asked the council Wednesday to approve combining the lines of credit at Escambia County Bank not to exceed $400,000.

Councilman Crapps said he wasn't going to vote to do it until the entire council was present. Councilwoman Dean pointed out that the council had already voted to consolidate the loans, noting the only reason they were there Wednesday was to set the amount.

“We've already voted to approve,” Dean said.

“We need the whole crew here,” Crapps said. “There's no guarantee something won't screw up and whose name will be on it, mine and Lillian's.”

Discussion centered around the fact that Councilman Johnson would not be allowed to vote on the motion since his wife works at Escambia County Bank.

Dean said she understood Crapps' concerns and said it would be different if the council hadn't previously voted to approve the debt consolidation.

Dean then made a motion to consolidate the two lines of credit totaling $362,261.32 into one loan at Escambia County Bank. Councilman Johnson issued the second.

The motion passed on a 2-1-1 vote with Dean and Bondurant voting yes, Crapps voting no and Johnson abstaining.

 
 

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