March 17, 2023

These figures show the accounts payable and debt balances for the City of Prattville. All other items listed, except for Accounts Payable, Group Health and Community Initiatives, are the loan and bond issues. These balances reflect the application of the most recent bond payment.

Account payable varies month-to-month based on projects, break-downs, maintenance and usage. Since November 2012, accounts payable due have been within a 30-day window. All sales tax increase dollars are moved to the debt service reserves bank account one month in arrears following receipt.

• August 2011, the City's credit rating was decreased from A to A-.
• November 2011, the GO 2006 Warrant was paid off.
• February 2013, the Saulsberry Lease was paid off.
• February 2013, the City's Group Health Account was made current.
• On April 16th, 2013, the Prattville City Council voted to refinance the 2006A General Obligation Refunding Warrants. This refinancing will save the City of Prattville $922,757.28 over the life of the bonds. These bonds will now be reflected on our Accounts Payable & Debt Balance reports as the 2013A General Obligation Refunding Warrants. These refinanced bonds expire the same fiscal year as the old ones and show a balance due of $9,815,000. During the refinancing process, the City was reevaluated by Standard & Poor's Ratings Services, who raised the City's credit rating from A- to A. This upgraded rating speaks to the credit-worthiness of the City of Prattville. S&P's summary letter states: "the upgrade reflects the city's improved financial position following the implementation of improved budgeting practices and expenditure reductions." On April 23rd, 2013, the bond refinancing was closed and the warrants have been released.
• May 2013, the City Hall Roof Debt and Fire Training Facility Debt were paid off.
• August 2013, the SunTrust Leases and the Fire Pumper Truck Debt were paid off.
• August 2013, the City took out a loan for the purchase of 150+ acres of land to be utilized for a sludge application field, and possible expansion of the South Industrial Park.
• January 2014, the City paid off the Regions Leases, which were used to purchase Sanitation Trucks, defibrillators, a backhoe, and the Wastewater Camera Van.
• February 2014, the Elmore County Taxes were paid off. (Note: The State erroneously paid us monies that were to go to Elmore County. Once the Statecaught their error, the Citynegotiated a payment schedule in order to reimburse Elmore County for the state's error.)
• On June 17th, 2014, the Prattville City Council voted to refinance the 2007 General Obligation Refunding Warrants. This refinancing will save the City of Prattville $1,084,369.18 over the life of the bonds. These bonds will now be reflected on our Accounts Payable & Debt Balance reports as the 2014A General Obligation Refunding Warrants. These refinanced bonds expire the same fiscal year as the old ones and show a balance due of $9,955,000. During the refinancing process, the City was reevaluated by Standard & Poor's Ratings Services, who raised the City's credit rating from A to AA- on July 25, 2014. This upgraded rating speaks to the credit-worthiness of the City of Prattville. S&P's summary letter states: "The raised ratings are due primarily to our view of the city's significant improvement of its financial position during the past three fiscal years." On July 30th, 2014, the bond refinancing was closed and the warrants have been released.  "This approval rating in these difficult times by S&P proves that teamwork coupled with a business-type approach pays off," stated Mayor Bill Gillespie, Jr.
• In October 2014, Wastewater reserves were used to pay off the SRF 06 Pine Creek Interceptor Sewer Extension.
• In November 2014, the 2007 EDI Warrant was paid off.
• On April 7th, 2015, the Prattville City Council voted to refinance the 2006A and 2006B General Obligation Refunding Warrants. This refinancing will save the City of Prattville $1,105,701.60 over the life of the bonds. These bonds will now be reflected on our Accounts Payable & Debt Balance reports as the 2015A General Obligation Refunding Warrants. These refinanced bonds expire the same fiscal year as the old ones and show a balance due of $12,280,000.
• Amfund, which was utilized to finance a fire truck, was paid off in July 2015.
• The 2006A EDI Warrant was paid off in November 2015.
• The SRF 96 loan was paid off in March 2016.
• US Bancorp was added in April 2016 and finances the purchase of Victory Motorcycles for PPD. The May 1 debt payment was made the end of April with funds from the debt service reserve account.
• Trustmark Sanitation Equipment loan was added in May 2016 and covered the purchase of five garbage trucks, one side-arm garbage truck, two boom trash trucks and one Parkan vehicle.
• The 2006B EDI Warrant was paid off in June 2016.
• In August 2016, the Cityentered into a loan agreement with the Alabama Water Pollution Control Authority and the Alabama Department of Environmental Management in the amount of$825,000 for the North Silver Hills drainage project. While it is a role of government to provide an environment for private enterprise to flourish. It is also our role to protect and maintain our infrastructure. This project was taken on to prevent erosion as well as protect our infrastructure, private/public property and families. Additionally, due to the structure of this partial principal forgiveness loan, only $415,000 of the principal will have to be repaid by the City. The remaining $410,000 of principal will be forgiven by the Alabama Water Pollution Control Authority.
• In November 2016, the City purchased a 79' Aerial Firetruck on deferred payment. Because it was a demo, the City received a special pricing and payment arrangement. The first installment wasdue December 2017.
• In March 2017, the Cityentered into a loan agreement with the Alabama Water Pollution Control Authority and the Alabama Department of Environmental Management in the amount of $463,000for the Woodvale drainage project. While it is a role of government to provide an environment for private enterprise to flourish. It is also our role to protect and maintain our infrastructure. This project was taken on to prevent erosion as well as protect our infrastructure, private/public property and families. Additionally, due to the structure of this partial principal forgiveness loan, only $240,000 of the principal will have to be repaid by the City. The remaining $223,000 will be forgiven by the Alabama Water Pollution Control Authority.
• In September 2017, the City called the remaining maturities of the 2009 General Obligation Refunding Warrants in the amount of $3,310,000, plus accrued interest. By paying these warrants off early, the City saved a total of $320,307 in interest expense.
• In November 2017, the City issued the 2017-A General Obligation Sewer Warrants in the amount of $15,505,000. The proceeds from this debt issue were used to finance the acquisition, constructionand installation of certain sewer improvements at the Pine Creek Wastewater Treatment Plant.

• In December 2017, the City called the remaining maturities of the 2009-A General Obligation Warrants in the amount of $1,550,000, plus accrued interest. By paying these warrants off early, the City saved a total of $474,495 in interest expense.

In February 2018, the City entered into a loan agreement with the Alabama Water Pollution Control Authority and the Alabama Department of Environmental Management and issued the 2018-CWSRF-DL General Obligation Warrant in the amount of $17,000,000. The proceeds from this loan were used to finance the acquisition, construction, and installation of certain sewer improvements at the Pine Creek Wastewater Treatment Plant.

• In June 2018, the Alabama Water Pollution Control Authority, the Alabama Department of Environmental Management, and the City realized that this loan qualified for, and should have received, forgiveness of a portion of the principal in the amount of $200,000. The loan agreement and related warrant were updated to reflect the new principal amount to be repaid of $16,800,000, as well as the new 2018A-CWSRF-DL General Obligation Warrant.
• In September 2018, the City called the 2026 and 2027 maturities of the 2013-A General Obligation Refunding Warrants in the amount of $3,335,000, plus accrued interest. By paying these warrants off early, the City saved a total of $744,121 in interest expense.
• In November 2018, the Cityentered into a loan agreement with the Alabama Water Pollution Control Authority and the Alabama Department of Environmental Management in the amount of $465,000for the 10^th Street drainage project. While it is a role of government to provide an environment for private enterprise to flourish. It is also our role to protect and maintain our infrastructure. This project was taken on to prevent erosion as well as protect our infrastructure, private/public property and families. Additionally, due to the structure of this partial principal forgiveness loan, only $315,000 of the principal will have to be repaid by the City. The remaining $150,000 will be forgiven by the Alabama Water Pollution Control Authority.
• In December 2018, the City drew down on its Series 2017 GO Warrant line of credit with Trustmark Bank in the total amount of $2,463,637.89. This cash was used to fund economic development projects in the South Industrial Park in the short term until other financing was negotiated and project grant payments were received.
• On April 16, 2019, the Prattville City Council voted to authorize the issuance of a $3,200,000 loan with Branch Banking and Trust Company (BB&T). The loan was closed and the related Series 2019 General Obligation Warrant was issued on April 30, 2019. A portion of the loan proceeds ($2,463,637.89) was used to refund and payoff the Series 2017 GO Warrant line of credit with Trustmark bank, while the remaining available loan proceeds will be used to pay for economic development-related infrastructure projects in the South Industrial Park. The loan is for ten years with a 3.01% tax exempt bank qualified interest rate and has no prepayment penalty.
• On June 4, 2019, the Prattville City Council voted to enter into an interest-free capital lease with Zoll Medical Corporation for six defibrillators for the Fire Department. The total lease amount is $195,464. The lease will be repaid in annual installments over the course of five years beginning in October 2019.
• In July 2019, the City called the 2025 maturities of the 2013A General Obligation Refunding Warrants, as well as the 2025 and 2026 maturities of the 2014 General Obligation Refunding Warrants in the amount of $3,850,000, plus accrued interest. By paying these warrants off early, the City saved a total of $625,312.50 in interest expense. 
• The capital lease through US Bancorp for the Police Department’s Victory Motorcycles was paid off in November 2019.
• On May 5, 2020, the Prattville City Council voted to authorize the issuance of a $3,130,000 loan with Trustmark Bank. The loan was closed and the related Series 2020 General Obligation Warrant was issued on May 11, 2020. A portion of the loan proceeds ($456,099.51) was used to reimburse the City for expenses already incurred on the project, while the remaining available loan proceeds were used to pay for the construction of the Fire Station #4 and Police Annex. The loan is for fifteen years with a 1.76% tax exempt bank qualified interest rate and has no prepayment penalty. 
• The loan through BBVA Compass bank for the Wastewater Sludge Field was paid off in August 2020.
• In August 2020, the Cityentered into a loan agreement with the Alabama Water Pollution Control Authority and the Alabama Department of Environmental Management in the amount of $4,130,000for the Washington Street, Bunche Avenue, and Easy Street Sewer and Stormwater Project. While it is a role of government to provide an environment for private enterprise to flourish. It is also our role to protect and maintain our infrastructure. This project was taken on to prevent erosion as well as protect our infrastructure, private/public property and families. Due to this project having both sanitary sewer and stormwater components, the debt service on the loan will be split between the Wastewater Fund (65%) and the General Fund (35%).
• On December 15, 2020, the Prattville City Council voted to authorize the issuance of a $4,650,000 loan with BBVA Compass The loan was closed and the related Series 2020-DGeneral Obligation Warrant was issued on December 30, 2020. The loan proceeds were used to pay for the construction of the Mac Gray 2.0 softball park expansion and improvements. The loan is for fifteen years with a 2.04% tax exempt bank qualified interest rate and has no prepayment penalty. 
• On March 1, 2021, the City called the 2022, 2023 and 2024maturities of the 2013A General Obligation Refunding Warrants, as well as the 2023and 2024 maturities of the 2014 General Obligation Refunding Warrants in the amount of $5,390,000, plus accrued interest. By paying these warrants off early, the City saved a total of $307,357.50 in interest expense. 
• The 2013A General Obligation Refunding Warrants were paid off in March 2021.
• In March 2021, the City entered into a loan agreement with the Alabama Water Pollution Control Authority and the Alabama Department of Environmental Management in the amount of $613,000 for the Maple Streetdrainage improvement  While it is a role of government to provide an environment for private enterprise to flourish. It is also our role to protect and maintain our infrastructure. This project was taken on to prevent erosion as well as protect our infrastructure, private/public property and families. Additionally, due to the structure of this partial principal forgiveness loan, only $315,000 of the principal will have to be repaid by the City. The remaining $298,000 will be forgiven by the Alabama Water Pollution Control Authority.
•  In February 2022, the City entered into a general obligation warrant agreement with the Alabama Water Pollution Authority and the Alabama Department of Environmental Management (ADEM) in the amount of $2,461,050 for Thomas Avenue and Selma Highway sewer and stormwater improvements.  While it is a role of government to provide an environment for private enterprises to flourish.  It is our role to protect and maintain our infrastructure.  Additionally, due to the structure of this partial principal forgiveness loan, only $2,030,000 of the principal will be repaid by the City.  The remaining $431,050 will be forgiven by the Alabama Water Pollution Control Authority.

Note: EDI stands for Economic Development Improvements. SRF is for State Revolving Funds. GO means General Obligation. If you have any additional questions, you may contact our Finance Director Daniel Oakley at

 

 

Citywide	Purpose of Debt	As of 1/19/11	As of 02/28/2023
Accounts Payable (vendors only)		2,477,104.45	0.00
Due to Community Initiatives *		37,250.00	0.00
Due to Group Health		1,423,757.00	0.00
Bridge Loan		3,100,000.00	0.00
2006A EDI Warrant	Conference Center & Town Center Infrastructure & Land	19,765,000.00	0.00
2006B EDI Warrant	Bass Pro and High Point Infrastructure & Land	8,240,000.00	0.00
2007 EDI Warrant	High Point Infrastructure	14,235,000.00	0.00
GO 2006 Warrant	Stadium upgrade and Sinkhole	760,000.00	0.00
GO 2009 Refund Warrant	Refunded GO 2001 and 2002	5,980,000.00	0.00
2009 Chevron Warrant	Chevron Energy Project	1,795,000.00	0.00
SRF 96	Sludge Digester & WW Treatment Upgrade (Enterprise Fund)	1,335,000.00	0.00
SRF 06	Pine Creek Interceptor Sewer Extension	1,680,000.00	0.00
Banktrust Roof	City Hall Roof	435,477.73	0.00
Banktrust Elmore	Elmore County Taxes	724,206.69	0.00
Banktrust Line of Credit		1,000,000.00	0.00
Diversified Lenders	Incode (Accounting Software)	36,872.20	0.00
Amfund	Fire Truck	310,000.00	0.00
Fire Training Facility	Fire Training Facility	384,191.79	0.00
Pumper Truck	Fire Truck	406,024.02	0.00
Regions Leases	Sanitation Trucks, Defibrillators, Backhoe, Wastewater Camera Van	332,831.64	0.00
Saulsberry Leases	Fire Truck	78,372.29	0.00
Suntrust Leases	Sanitation Trucks, Ambulance Remount, Wastewater VanCon Truck, HD pickup, ROW Cutting Equipment, 7 Police Vehicles, 4 Motorcycles, FD Staff Vehicle	645,532.73	0.00
GO 2013A Refunding Warrant+	Refunded EDI 2006A		0.00
GO 2014A Refunding Warrant^	Refunded EDI 2007		0.00
GO 2015A Refunding Warrant&	Refunded EDI 2006A		0.00
GO 2015A Refunding Warrant&	Refunded EDI 2006B		0.00
BBVA 2013B	Wastewater Sludge Field (Enterprise Fund)		0.00
US Bancorp	Victory Motorcycles		0.00
Banktrust Sanitation Equipment	Garbage & Trash Trucks (Enterprise Fund)		0.00
Community Leasing - Firetruck	79' Aerial Firetruck		315,349,.12
2016-CWSRF-DL (Partial Principal Forgiveness Loan)	North Silver Hills Drainage Canal Restoration		290,000.00
2017-CWSRF-DL (Partial Principal Forgiveness Loan)	Woodvale Drainage Canal Restoration		190,000.00
2018D-CWSRF-DL (Partial Principal Forgiveness Loan)	10th Street Drainage Canal Restoration		260,000.00
Zoll- PFD Heart Monitors	Heart Monitors		39,092.78
GO 2017‐A Sewer Warrants	Pine Creek Plant Expansion Project ‐ Phase I		15,305,000.00
2018A‐CWSRF‐DL	Pine Creek Plant Expansion Project ‐ Phase I		13,825,000.00
GO 2019- Warrant	Economic Development -South Industrial Park		2,110,853.88
GO 2020- Warrant	Construction of Fire Station #4 and Police Annex		2,660,497.00
GO 2020- CWSRF-DL	Washington Street, Bunche Avenue, Easy Street, Sewer & Stormwater Project		2,466,750.00
GO 2020- CWSRF-DL	Washington Street, Bunche Avenue, Easy Street, Sewer & Stormwater Project		1,328,250.00
GO 2020-D Warrant	Mac Gray Park 2.0		4,108,876.89
GO 2020-D CWSRF-DL	Maple Street Drainage Project		290,000.00
GO 2022 CWSRF-DL	Thomas Avenue & Slema Highway Sewer and Stormwater Project		1,267,500.00
GO 2022 CWSRF-DL	Thomas Avenue & Slema Highway Sewer and Stormwater Project		682,500.00
GO 2022 A Warrants	Tier 1 Park Projects (Pratt Park, Newton Park, and Stanley Jensen Stadium)		9,885,00.00
GO 2022 A Warrants (Federally Taxable)	Tier 1 Park Projects (Pratt Park, Newton Park, and Stanley Jensen Stadium)		3,235,000.00
		65,181,620.54

58,259,669.67

 

32,864,250.00	Payment to come from fees for services in the Wastewater Enterprise Fund.
2,660,497.00	Payment to come from the Alabama Trust Fund receipts, which are restricted for capital improvements, technology improvements, etc.
4,108,876.89	Payment to come from Lodging Fee receipts, which are restricted for Parks & Recreation capital improvements.
354,441.90	Payment to come from General Fund receipts (excluding One Cent Sales Tax receipts)
5,151,603.88	Payment to come from Infrastructure - One Cent receipts
13,120,000.00	Payment to come from Parks and Recreation - One Cent receipts

 

* As of 1/19/2011, the 2011 budget was not passed and therefore, the 2011 budget allocations are not included in the 1/19/11 balance.

+ On 4/23/2013, a portion of the 2006A bonds were refunded. Because the call date on these bonds were not until November of 2014, the interest cost until that time had to be rolled into the refinancing. Prior total cost of this debt was $13,315,612.56 and current total cost of the debt is now $12,392,855.28. This represents a savings of $922,757.28 over the life of these bonds.

^ On 7/30/2014, a portion of the 2007 bonds were refunded. Because the call date on these bonds were not until November of 2014, the interest cost until that time had to be rolled into the refinancing. By taking advantage of lower interest rate, the City will be able to recognize a savings of $1,084,369.18 over the life of these bonds.

& On 4/16/2015, a portion of the 2006A and 2006B bonds were refunded. Because the call date on these bonds were not until November of 2015 and 2016, respectively, the interest costs until that time have to be rolled into the refinancing. By taking advantage of lower interest rates, the City will be able to recognize a savings of $1,105,701.60 over the life of these bonds without extending the life of these bonds.