EDITORIAL: Priceville produces cash cow
While many Alabama municipalities are stretching their pennies to pay their bills, the town of Priceville is smiling all the way to the bank.
Mayor Melvin Duran and council members made a smart move at their last regular meeting by calling in an outstanding long-term debt, adding some additional general obligation warrants and financing the entire $2.55 million debt package at a 3.7 percent fixed interest rate over 15 years. This compares very favorably to the prevailing interest rate of 6.43 percent.
The move generated a gross savings of $534,000 over the course of the loan and will bring in $311,000 for capital improvements over the next four years. A new $375,000 fire truck is part of the package.
Duran described the strategy of taking advantage of today’s lower interest rates on general obligation warrants as a “win-win” for Priceville.
“We’re lowering our long-term debt and generating additional money for capital improvements,” he pointed out.
Priceville’s leaders are to be commended for aggressively promoting business growth, practicing fiscal responsibility and using the town’s resources to provide quality services for its residents. Other municipalities would do well to follow their example.
