By Tanna M. Friday
Editor
TRUSSVILLE – The City of Trussville is looking to borrow funds for various city improvements through a series of general obligation (GO) warrants, paid solely from the full faith and credit of the city.
The Trussville City Council met on Tuesday evening, July 24, approving some proactive agenda items including a resolution authorizing Mayor Buddy Choat to sign a bond-purchase agreement with Stifel Nicholas & Co., Inc., underwriter for the general obligation warrants, for $26 million to fund public improvements in the City of Trussville.
The $26 million warrant issue, also known as Series 2018-A, will be allocated to fund $17.5 million for downtown improvements, $4.2 million for the Valley Road extension project, and $4.4 million for closing costs and reimbursements to the city.
“This agreement will be executed to engage Stifel Nicholas and Company, Inc. in this bond process,” said Councilor Jef Freeman. “There will be another meeting where the Council will formally approve the financing of the bonds. This resolution is really authorizing the mayor to enter into that agreement with that firm to get the process started.”
Attorney Rod Kanter, who presented the details of the GO process, said that the city has a good GO credit rating which allows for lower interest rates.
“This method of borrowing is very efficient because the city has such a strong credit rating creating lower interest rates,” said Kanter.
Mayor Choat included a further explanation of the projects that will be included in the Series 2018-A and 2018-B warrant issues.
“It will include the Valley Road Extension project that was approved recently for a little over $4 million dollars,” said Choat. “There is also a part that will pertain to the Trussville City School Board to fund some capital improvements.”
Trussville City Schools is looking at a $7 million warrant issue, Series 2018-B, for the construction and expansion of school facilities and roof repair. A resolution was passed during the TCS Board of Education meeting on Monday, July 23, as an agreement to memorialize their understanding that a portion of the one penny, portion of sales tax earmarked for schools, will be used to pay for debt service of 2018-B.
Kanter explains that the resolution includes several elements including the portion of the ‘one penny’ earmarked for education that has been funding the nearly 10-year-old Education Trust Fund.
“The Education Trust Fund was established by the City of Trussville when the school system was new,” said Kanter, “The idea was to take from that ‘one penny’, after debt services had been paid, using 25% of balance to serve as a fund for capital expenditures for the school. “Now that the school system is flourishing, there is no need to continue those allocations. Instead, the 25% going forward will no longer go into the city established Education Trust Fund but travel with other proceeds of the ‘one penny’ to the TCS Board of Education.”
During the council reports, Mayor Choat updated the Council as well as those in attendance other projects taking place within the city.
“We are in the process of establishing more crosswalks on N. Chalkville Road,” said Choat. “These are being implemented on Lake Street, Oak Street, and Magnolia. This is just another precaution measure we are taking in the safety of our city.”
In other matters, the Council approved:
- Minutes from July 10 meeting;
- Resolution 2018-019 authorizing Mayor to execute Purchase contract for 2018 Warrant issue;
- Resolution 2018-020 declaring nuisance to 6335 Patriots Pass;
- Resolution 2018-021 declaring two police vehicles as surplus;
- Ordinance 2018-017 ANX for the city to annex 7435 Gasoline Road;
- Dunn Construction contract renewal of 3-year paving contract through July 11, 2019;
- Merit increases effective Aug. 4 for the police, fire, public works, and park and recreation departments;
- Purchase of Ford Explorer for Finance Department;
- Auditing accounts: accounts payable; and Taser CEW instructor Course;
- All Council carried over reports for August meeting.
The next Council workshop will be on Thursday, Aug. 2, with the regular Council meeting scheduled for the following Tuesday, Aug. 7 beginning at 6 p.m.