City Council Throws GLTC Financial Lifeline - - ABC13

City Council Throws GLTC Financial Lifeline


Reporter: Mark Kelly l Videographer: Parker Slaybaugh

Lynchburg, VA - Lynchburg City Council threw a struggling GLTC a financial lifeline Tuesday. But, not the lifeline the public bus company originally requested.

In a 4-3 vote, council will give GLTC about $506,000 from the city's General Fund Balance. City Manager Kimball Payne recommended the action.

Originally, GLTC asked the city to cosign a $500,000 line of credit from SunTrust Bank. But, city staff expressed discomfort with that, due to the interest on the credit line and fearful what a GLTC default could do to the city's bond rating.

Council Member Randy Nelson gave his reason for a yes vote.

"Is it clear that this is a service to our citizens. The answer, of course, is yes. But, this is a service not only to our citizens but to the employers. They need employees to show up at work on a regular basis," said Nelson.

City staff assured council Tuesday that GLTC's board is focused on making changes to the bus company. You may remember, just a few years ago, GLTC ran a surplus.

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