Junction City Council pays off bank loan

November 12, 2004|LIZ MAPLES

JUNCTION CITY - The city will write a check for $43,000, paying off its loan to Farmers National Bank.

Council members, in a split vote, decided to pay off the loan Thursday.

The city was extended a $100,000 line of credit at the bank to pay bills and payroll.

It had just renewed the loan, and it wouldn't have been due until June, but would have accumulated interest until then. Council members are using the money from the sale of the water system to pay off the loan.

Council members Donnie Goode and Jim Douglas didn't want to make the payment, and voted against it.

Mayor G.G. Harmon said later that he didn't support it either.

They said that they shouldn't pay off the bank all at once, or the city wouldn't be able to take any more out on their line of credit.

Douglas was also concerned that the public works fund would then be left with only $5,000.


"I don't think we should deplete all the money, what if we need something," Douglas said.

Vernon said that any emergencies could be paid for out of the general fund.

Harmon said today that maybe $5,000 or $10,000 could have been paid on it. Council member Dewayne Taylor, voted to make the payment, but had suggested that a $21,500 payment be made.

Council member Connie Vernon said, "The sale of the water department was to get us out of debt, and the citizens of Junction City."

She said that since the money from the sale went into the city coffers the council had been approving "$1,000 here and $1,200 there."

"Pretty soon it'll be gone," she said.

Council member Roberta Zeller also voted for the payment.

The city has $55,000 in its general fund, and Zeller explained that the account would grow now that taxes are coming in.

It also has $41,000 in its municipal aid fund.

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