City OKs redemption of 2007 bonds, transfers $2M to escrow

The City of Opp on Wednesday approved the redemption and refinancing of the city’s general obligation warrants from 2007, which will put more money into the city’s general fund.

Opp Mayor John Bartholomew said the city’s payment won’t change, and the $250,000 will go into the city’s general fund to help pay for improvements within the city.

“This is authorizing Merchant Capital to resell the bonds at a lower rate,” he said. “This gives them the authority to move those bonds.”

Additionally, the council approved an escrow trust agreement with Regions Bank for the $2 million the city received for the sale of Opp Cablevision to AndyCable.

Bartholomew said the money had been in attorney Tom Albritton’s trust account.

“We are giving them the authority to move that money to Regions Bank, and to pay down on the bond issue in 2017,” he said.

The additional $250,000 will go to things such as street paving, and needed equipment such as a new dump truck, Bartholomew said.

A portion of the Series 2007 Warrants were used by the Opp Utilities Board to refinance certain outstanding debt and to finance certain capital improvements, including improvements to the cable system.

During that time, the Utilities Board agreed to pay $11,505,000 of the original principal amount of the bonds.