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Troy council approves refinancing of debt, bank loan

The Troy City Council approved restructuring its debt to take advantage of better interest rates.

Troy Mayor Jason Reeves said refinancing the debt would decrease the city’s debt service from about $3.5 million to around $2.4 million. Reeves said the move was made to free up funding for several future public improvement projects.

Reeves said some additional funding would be needed for the projects and the city looked at both the bond market and a traditional bank loan as options. Reeves said in the current market, the city would get a better interest rate borrowing the money from Troy Bank & Trust Co. He said, after the loan, the city would have about $5.2 million available for future projects.

The council also approved a retail, off premises beer and wine license and an off premises retail liquor license for ZTEC 637, which will open on U.S. Highway 231 next to Captain D’s in about two to three weeks.

The council also approved funding for the Pike Area Transit System. Director Donta Frazier said 80 percent of the TAPS budget came from federal funding and the remaining 20 percent was paid by Troy, Goshen and Brundidge. He said the amount each city paid was determined by population and Troy paid about 50 percent of the money required for the federal match.

Reeves asked the council to table making a decision on bids for street resurfacing. He said the bids came in higher than expected because of some of the alternative paving projects in the bid. He said he was going to look at splitting the alternative projects into a separate bid. He said the council had 60-days to approve the bids. The council will make a decision on the bids at its next meeting, July 27.

The council also heard the first reading of an ordinance to establish an entertainment district in downtown Troy. Entertainment districts are allowed by state law and under certain circumstances — such as a licensed festival or outdoor event — open containers are allowed outside of the establishment where the alcoholic beverage was purchased. The council will consider the ordinance at its July 27 meeting.