The Flomaton Town Council voted to take about $45,000 out of its money market account to pay bills with council members saying if the town isn't careful it won't have that money to fall back on in the future.
Mayor Dewey Bondurant Jr., said the money market account currently has a balance of about $83,000.
“The only thing to cure us is to look up and see we are out of money,” said Councilman Buster Crapps.
“I'm really embarrassed,” Bondurant said. “But I see no other way than to take it out.”
“We do that one more month and we're out,” said Councilman Roger Adkinson. “We can't just keep doing projects when we don't have the money.”
Bondurant said there is a place on Junction Road that has been in need of repair for three years.
“Without the money, let it wait another three years,” Adkinson said.
Crapps suggested putting a freeze on everything unless it was an emergency.
“If you don't put it in the budget, don't spend it,” said Councilman Charlie Reardon.
Bondurant told the council he would do what he could to get the town out of trouble.
“It's great to have grants,” Crapps said. “But you can grant yourself into debt.
The council then voted to take the money out of the money market account to pay the bills.
Lines of credit
In other business Monday, the council voted to renew its lines of credit at Escambia County Bank and United Bank and also raise the line of credit at United Bank from $100,000 to $200,000.
Mayor Bondurant said the council had to vote to renew the credit lines each year. He said the town currently has a $200,000 line of credit at Escambia County Bank with a current balance owed at about $70,000.
He said the current balance at United Bank is about $30,000 and suggested the additional $100,000 line of credit.
Councilman Jim Johnson asked what was the purpose of raising the amount.
“I just don't want to get in a jam,” Bondurant said.
“I hate to raise it $100,000 and you go and spend $50,000 on a piece of equipment,” Crapps said.
The council did vote unanimously to renew the credit lines and increase the line at United Bank.
In other business, the council:
- Voted to declare July 20-22 as the school supply Sales Tax Holiday.
“Does this help anybody in Flomaton?” Councilman Roger Adkinson asked. “Sales tax in Flomaton goes back to help the people of Flomaton.”
- Agreed to take $4,500 out of the money market account to purchase a 2011 police car.
- Agreed to purchase new flag holders to be used to display American flags in town during certain holidays.
