Council approves new loan
Next meeting to be over telephone
January 7, 2021
During a special meeting Monday afternoon, the Flomaton Town Council voted to amend its previous agreement with United Bank to borrow an additional $119,750 that Mayor Dewey Bondurant, Jr., said would allow the town pay off all of its long-term debt, including the town's line of credit at AmeriFirst Bank, formerly Escambia County Bank.
In November, the council voted to borrow $1,577,890 from United Bank to pay off the long-term debt with the exception of the LOC at Escambia County Bank. At the time, Mayor Bondurant said he was in the process of trying to sell several town-owned buildings and would use that money to pay off the LOC.
During Monday's teleconference meeting, Mayor Bondurant told the council that United Bank's board of directors had approved increasing the loan to $1,677,640, which would allow the town to pay off the LOC.
The mayor said by consolidating the debt at an interest rate of 2.919 percent the town will save about $11,000 per month in debt payments.
Due to COVID-19 the council also agreed to conduct its Monday, Jan. 11, meeting through a teleconference call instead of physically gathering at town hall. The meeting will be held at 3:30 p.m. Residents wishing to listen to the meeting can call town hall Monday at 296-2431 to get the access code to listen to the meeting.