Poplar Bluff council approves short-term bridge loan to cover tornado costs

The Poplar Bluff City Council on July 21 adopted an ordinance authorizing a short-term bridge loan from People’s Community Bank to cover storm-related expenditures from the March 14 tornado while the city waits for federal reimbursement under presidentially declared disaster FEMA‑4867‑DR. City Manager Robert Nodell told the council the city has incurred “significant cost and expenditures above and beyond the normal operating budget” for overtime, equipment repairs, debris removal and other storm work and that a presidential disaster declaration was issued on May 21, 2025. He said federal reimbursement can take “up to 18 months” from that declaration and the loan will let the city continue operations while it awaits FEMA funds. Nodell said the city solicited bids and received one offer from People’s Community Bank at 4.47% interest with full principal and interest due Dec. 31, 2026. He told the council the interest cost would not be eligible for FEMA reimbursement and would be budgeted in fiscal 2026. He also said reimbursable storm costs were likely to exceed $1.5 million and that without interim financing the city would face “austerity” measures, including staff reductions or delayed payments. The ordinance (Bill No. 86‑41) was adopted by roll call vote, with seven yes votes and no no votes. The council’s action accepts the bank’s proposal and authorizes city execution of the financing documents so work and obligations tied to storm cleanup can continue while the city awaits federal reimbursement. The council’s vote directs staff to proceed with the loan closing; the transcript did not record a specific mover or seconder for the adoption motion. Clerk Phelps recorded the roll call: Councilman Smith, Councilman Massingham, Councilman DePue, Councilman Boyer, Councilwoman Barbara Horton, Mayor Pro Tem Parson and Mayor Shane Corman all voted yes. Discussion only: Council members asked for and received clarifications about who would bear the interest cost (the city) and whether the city anticipated using the full loan amount (Nodell said the city did not expect to draw the full amount but needed the flexibility). No amendment to the loan terms was proposed during the meeting. Next steps: The city manager and finance staff are to complete loan documentation with People’s Community Bank and include the nonreimbursable interest in the 2026 budget.