The City of Opp has assets totaling $61 million, according to its audit for the fiscal year 2016.

That’s broken down into $18.6 million on the city side and $42.7 million on the utilities and industrial development side.

The information was distributed at Monday night’s meeting by accountants Carr, Riggs and Ingram, who performed the city’s audit.

The city also has $13.37 million in liabilities, while the utilities and industrial development has $16.38 million in liabilities.

The total net position for both sides is $32.5 million.

The following changes occurred in long-term debt for the city’s portion in FY2016:

• Notes payable dropped from $273,375 to $135,166. A payment of $109,368 is due this fiscal year;
• Capital leases dropped from $116,228 to $109,969. A payment of $70,610 is due within the year;
• General obligation warrants 2007 decreased from $1.14 million to $1.07 million. A $75,904 payment is due within this year;
• GO warrants 2011-A decreased from $5.1 million to $4.8 million. A payment of $235,000 is due this year;
• GO warrants 2015 decreased from $1.59 million to $1.58 million. A payment of $15,750 is due within this year;
• GO warrants 2015-A was not on the books at the beginning of FY2016, but was for $2.95 million at the end of the fiscal year.
• Revenue bonds on the utilities side, decreased from $13.5 million to $13.1 million. A $458,346 payment is due within the year.

Other things of note:

• The city has entered into a lease agreement with Alabama Aerospace Manufacturing (AAM), now Global Aerospace. The lease agreement qualifies as a capital lease and AAM may purchase the equipment for $1 at the end of the lease term. The present value of minimum lease payments for 2017 and 2018 total $31,553;
• The city made a loan of $2.5 million to the South Alabama Regional Airport Authority, funded by 2015-A series general obligation refunding warrants issued by the city. As part of the agreement SARA gives Opp 23 percent of the net proceeds of any lease or sale of the facilities at the authority less 5 percent of the gross lease proceeds plus $1,610. These payments are made monthly.
• The city made a loan of $6 million in 2011 to Mizell Memorial Hospital. It was funded by the 2011-A series general obligation warrants. $230,000 was paid in FY2016 on the debt and is expected to pay $235,00 this year.
• The city also has a note payable totaling $33,336 with John Deere Financial for a term of 48-months at $1,392 per month through Nov. 2018.
• It has a note payable totaling $21,665 with BancorpSouth Equipment Finance for a term of 48-months at $1,161 per month through April 2018;
• Another note payable for 37 months totaling $80,115 at $2,138 per month through May 2017.
• The city has two lease agreements as lessee for financing the acquisition of equipment. The equipment totals $381,575 less depreciation of $337,955 for a carrying value of $43,620;
• The city has lease agreement for garbage trucks, which are accounted for as operating leases. The lease expense for the 2016 fiscal year was $86,932. The future minimum payments are $86,932 this year and $44,021 next year.

Total long-term debt for the city increased from $8.18 million to $10.65 million.

It’s important to note that while there is an increase of some $2.46 million on the books, there is, in reality, no new debt. The city was already paying its portion of the SARA debt service.

These numbers do not include long-term debt from the city’s component unit – the board of education, or the long-term debt for the utilities board and the industrial development board.

On Monday night, the city received an unqualified opinion on its audit.