By Chris Yow
TRUSSVILLE – The Trussville City Council voted 3-2 last week to refinance a bond issue that will give the city an immediate cash influx of more than $400,000. The bond up for discussion was a portion of close to a $30 million bond issue taken out for the football stadium, Husky Parkway and bridge project, among other capital projects.
The vote was split with councilmen Perry Cook and Jef Freeman voting against the measure.
Cook, who was not present at the work session when the bond was discussed, asked whether there were other offers made available to which the council could compare the one given.
“I just wanted to do my due diligence and make sure we get the best deal out there,” he said. “Did we? Maybe, but we don’t know because we didn’t ask anybody else.”
Councilman Alan Taylor said there was no similar options given, but the alternative would be to sell the bond in the open market. By doing so, the bonds would be subject to fluctuating interest rates, and could cost the city more in the long run. The flip side is that depending on the interest rates, it could also save the city money if rates became more favorable.
Mayor Buddy Choat said during the work session that he felt like getting the cash up front and being certain the payments would not change for the duration of the loan.
The cash returned would also allow the city to put a large sum toward finishing the outfitting the new library. When the library expansion was approved, the funds were not allocated at the time.
“We feel like we got a good rate,” Choat said. “We reduced our interest rate to 3.29 (percent) and we’re going to get a refund that we’re going to put to the library.”
The bond payment and length of payment won’t change with this refinance.
“I think it was a good deal,” Choat said. “I trust the people we do business with.”