Saint-Martinville city council voted unanimously to authorize the issuance of a bond of $ 250,000, to be repaid by September 30, 2022, so that the city can repay the existing debt and the costs of the debt. operation while its short-term cash flow improves, according to the Iberian Daily.
Farmer and Merchant Bank’s $ 250,000 would be used to cover supplier payments and other overdue costs, they say, some for more than six months, due to a shortfall against budget estimates. 2020-2021.
Budget projections included an increase in tariffs for the city’s electricity and water utilities that Mayor Melinda Mitchell refused to adopt last year.
The board discussed how to manage the more than $ 400,000 in American Rescue Plan Act money that is available to cover deficits and expenses due to the COVID-19 pandemic.
According to surety lawyer Grant Schlueter with Foley and Juddell, the bonds would be issued at a 5% interest rate, and the bond funds could be ready as early as Friday.
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