Flo Water gains $1 Million line of credit

Reflecting the sound management and business practices that Flo Water has followed since the new administration was created less than three years ago, the community water supply company was offered and agreed to accept a million dollar line of credit from Community National Bank during their regular monthly meeting, June 4, 2009 at the Buffalo Masonic Lodge.

Community National Bank/Fairfield Senior Vice President Gene Chavers was present at the meeting to tell the directors that the loan had been approved. The directors were presented with the choice of a three-year line at 6.5 percent, or a five-year line at 7 percent. They chose to take the longer choice. The board plans to pay off its debt to Palestine Water Works, and to pay off the WETS system that was purchased by the previous administration to try to make the Highway 75 well usable.

There was an extended and sometimes heated discussion with KSA Executive V.P. Robert Thurber and contractor McKinney & McMillen Project Manager T.J. McKin- ney. The Flo Water Directors were unhappy, to say the least, with the delays and with the fact that there were items in the contract that were not performed, items not in the contract that should have been placed there during the bidding process, and charges for inspecting a pump that was put back into the well and soon found to be worn out.

After discussion and negotiation the directors agreed to release $50,000 in payments and to hold the rest for another month pending further negotiations.

The directors agreed, after hearing from ESD#4 Director Pat Smith, to continue offering a $2 check-off for members to make donations to Flo VFD for the next 18 months until ESD#4 is funded by taxes. They decided to add the option for the checkoff money to go to Oakwood or Buffalo VFD as well as to Flo VFD.

The Corporation reported that it pumped 7,610,500 gallons of water this month and sold 5,073,000. 931,600 gallons were used for flushing lines, leaving a loss of 1,605,900 gallons or 21%. These numbers are a considerable improvement over previous ones, and reflect more accurate reading in the pumping stations, and the repair of leaks.