City approves $1 million loan
Hurricane woes slow cash flow
BY BRADLEY “B.J.” DAVIS, JR. Gulf Breeze News bjdavis@gulfbreezenews.com

Gilchrist

The city of Gulf Breeze authorized a $1 million line of credit from SunTrust Bank to maintain a stable cash flow position. City officials say the issue of the slow reimb u r s e m e n t process by FEMA in order to complete posthurricane projects prompted a need for the loan.

“We have a lot going on, we’ve paid out a lot of money for park repairs, and FEMA has not come through although they’re committed, we’re not receiving funds like we should,” said Mayor Lane Gilchrist. According to a memorandum from city staff to city council, Gulf Breeze has spent nearly $12 million is hurricane related expenses that will be reimbursed by the emergency agency. However, only $8 million has been reimbursed.

“These loans can be refunded as soon as we receive our feedback from FEMA,” said Gilchrist. “Hopefully this will be it, but we don’t know.” In December or 2004, city council adopted a resolution authorizing the issuance of loans not to exceed $3 million for hurricane recovery. It was then that a loan was issued for $1 million to the city. When it came time to pay the loan off one year later, unanticipated delays of repairs and delays in FEMA reimbursements forced the city to adopt another resolution to extend the loan for an additional year.

“We continue to advise FEMA of our problems. We are advised that our requests are being processed in due course,” said Edwin “Buz” Eddy. “Had we realized that it would take so so long to receive funds from FEMA, we may have recommended delay on some of the other cash demanding projects.”

According to Eddy, post-hurricane progress of the city has not slowed despite occasional cash flow issues. The city has spent around $1.3 million for the road behind Andrews

Institute and turn lanes along Hwy. 98. In addition, Shoreline Park South and North have been repaired including parking lot repaving. The city is also in the process of paying out $1.5 million with the Florida Forever Stormwater Project, which will also be reimbursed for the eligible amount.