Marksville applies for $1M line-of-credit

While city officials hope they don't have to rely on it heavily, the Marksville City Council has approved applying for a $1,125,000 emergency line-of-credit as an alternate revenue source.

The emergency loan was the main item discussed at the council's special meeting on April 27.

One issue making the action necessary are the economic impact the state "stay at home" order is having on city finances. The other is the expiration of a 1-cent sales tax earlier this year that was hoped to be reinstated by voters in May and back on the books in time for the start of the new budget year on July 1. That election has now been pushed back to August.

The line-of-credit will be through Cottonport Bank, if the state Bond Commission approves the city's request for the emergency revenue source.

In other business, the council approved going ahead with disconnecting water service on May 8. The city chose not to disconnect delinquent customers in April due to the COVID-19 crisis.

Noting that it must pay its $60,000 water bill to Avoyelles Water Commission for the water it sells to Marksville Water customers, the council decided to move forward with disconnecting those still owing bills for the March billing cycle and those who do not pay their April bills.

Approximately 50 of the 200 customers that were in danger of disconnection earlier this month have still not paid for the water they received in March.

Water and other utility companies regulated by the Public Service Commission have been prohibited from disconnecting service until after the state's emergency orders to control COVID-19 are lifted.

The unpaid bills will have to be paid at some point. Delinquent utility customers have been urged to use their federal stimulus checks to pay utility bills and housing costs that had to be delayed due to economic reasons related to the COVID crisis.