At tonight’s council meeting the sole item for discussion was the letter of acceptance of First Federal’s offer to loan the town $200,000 as a floating loan. That means a line of credit of up to $200,000, a revolving loan similar to a credit card which is NOT backed up any collateral. When you have a car loan the car is the collateral. Well we just got a loan (Business line of Credit) with no collateral, just our good word, for what it is worth.
But the problem is is that we have no plan to repay the loan except a state grant which may or may not come through. The grant was for $310,000 and the Town intends to pay Curt’s construction their first billing of $110,000 and others with the balance, by the time our first payment is due to the Bank, White Springs will be out of business.(We have to pay the Contractor first before we receive money from the state) .
Now Helen, that bastion of financial knowledge, will say that the State Promised that money to fix Kendrick street. Has the state ever lied to you or promised you something that were late on delivering the goods? We promised Curt’s Construction that we would pay them when the job was finished. It’s been a month and a half now and we still haven’t paid them one dime. So much for keeping your word. Is the State any better than White Springs? Doubtful. And each of the council members, all five of them plus the idiot Tommie didn’t know what the interest rate on the loan was, in fact Nikki didn’t understand what everyone was talking about when it was finally discovered that it was prime plus one percent, by the deer in the headlike look in her eyes.
When Meagan looked through the paperwork she found the rate as a point above prime. It is doubtful if any of the cousins understood the process of Prime interest rate. What it means and how does it fluctuate, if at all. When they said Prime plus 1% on a floating rate. What that means to Nikki is nothing. I looked at her the entire time we were talking about how much the letter of credit was going to cost us and Nikki was like an ape staring a wheel unable to grasp the purpose of a Prime Rate even though it affected how much the loan was going to cost the town.
As one Council member said, it wouldn’t have mattered how much the loan was going to cost us, we had no choice but to take it. It is unclear whether this council member understood how the prime number is even reached. And her words were correct. First Federal has bailed us out for the last time. They won’t be forgiving if we don’t pay our monthly “hit” on time. The loan will be called in and White Springs will be in bankruptcy (Chapter 7 because we could never reorganize under Chapter 11). What should have happened is that we should have saved the money. We had it when Stacy was here but now that Tommie is the man in charge we have squandered the money on frivolous projects and increase in salaries.
I mentioned earlier that the rate was was not fixed but would “float” with the Prime Number. Many, including me, believe that if the tax and spend Democrats get power, Biden get elected and the Senate “flips” to a Democratic Senate, interest rates, the Prime, will go higher and might even go through the ceiling. Higher Taxes cause the Prime to go up, a fact that none of our council members know, especially Nikki. The only thing she knows about finance is if the if Taxes go up she gets more handouts from the government.
Any way, if the town spends the extra money on other adventures we are certain to go into BANKRUPTCY. Good for us. Bad for the Council members especially Helen and the Three Cousins.
I pray to GOD that they misspend the money which is what they will do left to their own devices. The Village of White Springs is not far off.