Panama City approves $150 million loan amid commissioner concerns, tight budget

By Owen Girard

Published Aug. 8, 2023, 4:41 p.m. ET | Updated Aug. 8, 2023

Panama City, Fla. City Hall. (Photo/Ebyabe, Wikipedia)

PANAMA CITY, Fla. (FLV) – The Panama City Commission unanimously passed a resolution that issues a maximum loan of $150 million to the city from Truist Bank at Tuesday’s board meeting.

The funding is intended for several grants relating to different projects, including remaining damages from Hurricane Michael. The entire loan must be spent and payed back in a three year period with an interest rate of 5.82%.

Commissioner Josh Street emphasized that because of the interest, the city will need to absorb these costs during the 36-month plan.

“So to expect that we’re going to be able to do that and then make significant cuts in other areas, that just not feasible,” he said. “And I don’t think anyone here would like to raise taxes, so we’re going to be operating really tight for three years.”

Commissioner Jenna Flint Haligas shared that most of the grant funding will go towards significant infrastructure projects.

She also pointed out that it’s “definitely going to mean” that the city will not have money to do other important projects. However, Haligas said that she is happy about where the funds are going.

Some of the non-infrastructure projects that the funding seeks to take care of include the Martin Luther King Recreation Center and the Martin Theater.

“What is before us today is the vehicle and mechanism to get things done,” Commissioner Janice Lucas said. “Not in another five years, but three years.”

“I’m looking forward to breaking ground on these projects and I’m looking forward to not hearing from citizens about sewage backing up in their streets and houses,” she added.

The commission highlighted that the city is not bankrupt or in need of financial aid but is refinancing for the upcoming fiscal years.

“We are trying not to bankrupt the city of Panama City on free money,” Street explained. “That is the exact situation that we are in. We have grants that are reimbursable that we have to fund beforehand, that extends beyond our capability of cashflow.”