The Opp City Council on Monday night finalized the redemption and refinance of its 2007 bond issue, which generated $1.8 million for the city to spend on capital improvements.

The middle portion of the bonds were refunded and the interest rate was lowered, giving the city a savings of between $5,000 and $8,000 per year, and giving the utilities board a savings of between $25,000 and $30,000.

The interest rate was lowered from 4.45 percent to 3.3 percent.

The earlier and later portions of the bond will be refunded at a later date.

Additionally, the city did not refund bonds that are associated with the debt service to the school board.

The Opp Utilities Board used a portion of the Series 2007 warrants to refinance certain outstanding debt associated and to finance certain capital improvements, including improvement to the cable system.

Some $2 million was applied to erase debt associated with the cable system in order to allow stakeholders to have no claim since the system was sold to AndyCable last year.

Mayor John Bartholomew said the money will be used for things such as street paving and needed equipment such as a new dump truck.

Additionally, the city passed an ordinance giving the Opp Utilities Board authority to operate in the city. Officials said there was no clear record when the last time the board was authorized to do business and old Alabama law requires this.

The board now has authority to operate until 2045.