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FEMA forgiving Hurricane Katrina loans to city

BAY ST. LOUIS — The City of Bay St. Louis will not have to repay $4 million in loans it received following Hurricane Katrina in 2005.

The Sea Coast Echo reports city officials learned this week that the Federal Emergency Management Agency will forgive repayment of the storm recovery loans.

Mayor Les Fillingame says the money was used to cover city operating costs and utility operations after the area was wrecked by Katrina.

Had FEMA not acted, payments would have begun on the loan next fiscal year.

Fillingame says FEMA’s action removes a burden from the city’s budget.

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