Trussville OKs warrant purchase contract
By Gary Lloyd
TRUSSVILLE — The Trussville City Council last week authorized the execution of a warrant purchase contract with Merchant Capital for the sale and issuance of the city’s general obligation warrants.
The warrants’ purpose is to provide funds to construct, acquire and equip various capital improvements in the city of Trussville, including the new Hewitt-Trussville Stadium. The other purpose is to provide the refunding, at lower interest rates, of various debt issued by the city.
Trussville City Councilman Alan Taylor said last Thursday that the warrants had sold.
“That went extremely well,” he told the Trussville City Board of Education.
Trussville City Board of Education President Bill Roberts said the quick sale of the warrantsspeaks to the “good quality” of Trussville.
The city council in October approved an ordinance refunding its general obligation warrants from 2003. The city council earlier that month had authorized Mayor Gene Melton to take out a loan with Compass Bank to pay off a bond issue of $4.975 million with 10 years remaining on the debt obligation.
The current interest rate on the bond issue is 4.1 percent, escalating to 4.875 percent over the next 10 years. The interest rate on the loan from Compass will be 2.43 percent.
According to the ordinance, the principal of and interest on the warrant shall be payable in monthly installments on the 10th day of each month beginning Dec. 10.
Melton said the refinancing will save the city of Trussville about $700,000.
The bonds were issued in 2003 to pay off 1996 warrants for parks, fire trucks and drainage.
Contact Gary Lloyd at firstname.lastname@example.org and follow him on Twitter @GaryALloyd.