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Accounts Payable & Debt Balance 04/30/2017

May 25, 2017

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 account each month upon 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 they caught their error, we negotiated 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.
  • Banktrust Sanitation Equipment loan was added in May 2016 and covered the purchase of 5 garbage trucks, 1 side-arm garbage truck, and 2 boom trash trucks and one Parkan vehicle.
  • The 2006B EDI Warrant was paid off in June 2016.
  • In August 2016, we took on $825,000 debt 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, we purchased a 79' Aerial Firetruck on deferred payment. Because it was a demo, we received a special pricing and payment arrangement. The first installment is due December 2017.
  • In March 2017, we took on $463,000 debt for 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 the last 6 years and 3 months, the City of Prattville has decreased its overall debt by $26,881,100.94 or 41.2%.

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 04/30/17

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 3,310,000.00
2009 Chevron Warrant Chevron Energy Project 1,795,000.00 1,550,000.00
GO 2013A Refunding Warrant+ Refunded EDI 2006A   9,345,000.00
GO 2014A Refunding Warrant^ Refunded EDI 2007   9,310,000.00
GO 2015A Refunding Warrant& Refunded EDI 2006A   5,865,000.00
GO 2015A Refunding Warrant& Refunded EDI 2006B   5,200,000.00
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
BBVA 2013B Wastewater Sludge Field (Enterprise Fund)   446,829.12
US Bancorp Victory Motorcycles   155,257.66
Banktrust Sanitation Equipment Garbage & Trash Trucks (Enterprise Fund)   1,118,527.82
Community Leasing - Firetruck 79' Aerial Firetruck   726,905.00
2016-CWSRF-DL (Partial Principal Forgiveness Loan) North Silver Hills Drainage Canal Restoration   810,000.00

2017-CWSRF-DL (Partial Principal Forgiveness Loan) Woodvale Drainage Canal Restoration   463,000.00
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
     65,181,620.54  38,300,519.60

 

   Payment to come from proceeds of the 1 cent sales tax increase and other general government revenue sources, if necessary.
   Payment to come from fees for services in the Wastewater Enterprise Fund.
   Payment to come from fees for services in the Sanitation Enterprise Fund.

 

* 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.

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