LYNN HAVEN, Fla. (WMBB) — The city was notified of $5 million of debt forgiveness by mail last week.
City Manager Vickie Gainer said the city had applied for a community disaster loan through the Federal Emergency Management Agency (FEMA).
In order for the debt to be cancelled, they had to show a deficit for at least two years after Hurricane Michael.
It also required the city to report all of its finances to FEMA upfront.
Gainer said this is a major boost for the city after all the money spent on recovery.
“So many projects, so much hurricane-related expenses we had to put out and so that money was not something that you could pack away and use for a rainy day,” Gainer said. “That money had to be exhausted on things for the city that would help the city stay solvent.”
Gainer said they used the last of that money this past fiscal year. She added that the city’s finances are solid again.