Lake City, October 19, 2025
News Summary
Lake City is receiving financial assistance from Florence County with a $1 million loan approved by the county council. This loan is critical as the city faces budget cuts and workforce reductions. Carrying a 5% interest rate, the loan will be repaid quarterly over five years. The city has been struggling with financial management issues, and the loan is a necessary step to stabilize its operations. Alongside this, Pamplico has also received a loan to address its own financial troubles.
Lake City is set to receive crucial financial assistance from Florence County, as the county council approved a loan of up to $1 million on October 16, 2025. This decision comes in response to Lake City’s ongoing financial struggles, including the recent elimination of 21 city positions and a significant budget overhaul.
The loan, which carries a 5% interest rate, will be repaid quarterly over the next five years. This financial support is vital for Lake City, which has recently faced severe financial management issues, leading to visible problems such as uncollected commercial garbage.
Previously, a proposal for a $600,000 loan was tabled during the county council’s meeting in September, indicating initial hesitation about aiding Lake City. However, recognizing the urgent need for assistance, Florence County decided to move forward with the larger loan. Failure to address Lake City’s financial situation could ultimately affect the county’s finances, as the county now backs the loan due to Lake City’s deteriorated credit rating, which prohibits it from selling bonds.
Lake City’s financial crisis has included difficulties in completing its 2024 audit, resulting in approximately $90,000 in state revenue being withheld for three months. Additionally, the city has drastically revised its budget, implementing cost-cutting measures to eliminate $2 million in expenses and restructuring utility rates that have led to increased bills for residents.
As the city grapples with a “crisis of cashflow,” the former Interim City Administrator pointed out that poor financial management, such as the co-mingling of operating and grant funds, has exacerbated the situation. Lake City’s workforce expanded significantly from 79 employees in 2021 to 135 employees in 2024, with indications that there may have been additional unrecorded hires.
The county’s loan also includes stipulations to safeguard Florence County’s finances. In the event of a loan default, the county reserves the right to redirect Lake City’s local sales or property tax revenues to ensure repayment, which could push Lake City further into a financial crisis and potentially lead to bankruptcy.
In parallel, the county council has also approved a $210,000 loan for Pamplico, another locality dealing with financial troubles due to a delinquent audit affecting town funding. Pamplico is reportedly missing out on $18,000 monthly because of its financial challenges, emphasizing the pressing need for improved financial management among both towns.
Lake City’s approval of the loan reflects a step towards stabilizing its financial operations, as the city prepares to work under new permanent city administrator Malik Whitaker, who aims to provide consistent leadership and rectify the current fiscal issues.
Conclusion
It is crucial for both Lake City and Pamplico to enhance their financial operations to avoid further crises. The loans provided by Florence County serve as temporary relief while underlying financial practices must be reassessed and improved for long-term stability.
FAQ Section
What is the purpose of the $1 million loan to Lake City?
The loan aims to assist Lake City in addressing its financial struggles and to manage its cash flow crisis following significant budget cuts and operational issues.
What are the conditions of the loan?
The loan has a 5% interest rate and will be repaid quarterly over five years. In case of default, Florence County can redirect local sales or property taxes to cover repayments.
What challenges does Lake City currently face?
Lake City is facing a cash flow crisis, difficulties completing its 2024 audit, and has recently made deep cuts to its workforce while failing to maintain sanitation services.
What is the situation with Pamplico?
Pamplico has also been approved for a loan due to similar financial struggles, losing approximately $18,000 in funding each month due to audit-related issues.
Key Features of Financial Assistance
| Feature | Details |
|---|---|
| Loan Amount | $1 million |
| Interest Rate | 5% |
| Repayment Period | 5 years, quarterly |
| Conditions on Default | Redirect local sales or property taxes for repayment |
| City Position Cuts | 21 positions eliminated |
| Utility Rate Adjustment | Resident bills increased |
| Pamplico Loan Amount | $210,000 |
Deeper Dive: News & Info About This Topic
HERE Resources
Lake City Council Approves Controversial Budget with Job Cuts
Lake City Faces Financial Crisis with $1 Million Loan
Lake City Faces Imminent Bankruptcy Threat Amid Financial Crisis
Francis Marion University Receives Grant for Student Support
Additional Resources
- Post and Courier: Florence County Loan to Lake City
- WMBF News: Lake City Receives Financial Help
- WPDE: Florence County Lends to Lake City
- SC Now: Financial Assistance to Lake City
- KSL: Salt Lake City Ponders Financial Aid
- Wikipedia: Lake City
- Google Search: Lake City financial issues
- Encyclopedia Britannica: Financial Assistance
- Google News: Lake City assistance
- Google Scholar: Lake City finance
Author: STAFF HERE FLORENCE WRITER
The FLORENCE STAFF WRITER represents the experienced team at HEREFlorence.com, your go-to source for actionable local news and information in Florence, Florence County, and beyond. Specializing in "news you can use," we cover essential topics like product reviews for personal and business needs, local business directories, politics, real estate trends, neighborhood insights, and state news affecting the area—with deep expertise drawn from years of dedicated reporting and strong community input, including local press releases and business updates. We deliver top reporting on high-value events such as the Florence Festival of Lights, Pee Dee Pride, and agricultural expos at the Florence Center. Our coverage extends to key organizations like the Florence Regional Chamber of Commerce and the Pee Dee Area Council of Governments, plus leading businesses in healthcare and retail that power the local economy such as McLeod Health and Pee Dee Electric Cooperative. As part of the broader HERE network, including HERECharleston.com, HEREColumbia.com, HEREGreenville.com, and HEREHiltonHead.com, we provide comprehensive, credible insights into South Carolina's dynamic landscape.
