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Trussville council authorizes $8 million PNC note to consolidate lines of credit
Summary
The Trussville City Council approved a resolution authorizing an $8,000,000 general obligation note with PNC Bank to consolidate prior lines of credit, including payoff of about $6,000,000 of existing Synovus debt; one council member abstained from the final vote.
The Trussville City Council voted to authorize an $8,000,000 general obligation note with PNC Bank intended to consolidate two existing lines of credit and improve the city’s cash-management flexibility.
City and bank representatives told the council the consolidation will pay off roughly $6,000,000 of prior Synovus borrowing and leave a $2,000,000 portion of the new line that the mayor would have to request before drawing. A bank representative said the note’s variable rate is tied to "SOFR plus 1.5%." Councilors pressed on the rationale: city finance staff said using all cash now would reduce the city’s fund balance and that the new structure helps manage operating liquidity.
The resolution (recorded as Resolution 2026-52 during the meeting) passed after roll-call with one abstention. Councilors also clarified language in the paperwork: what the draft listed as "30 basis points" was confirmed on the record to mean 0.30 percentage points, not 30 percent.
Finance Director Joseph told the council that, while the city currently has unrestricted cash that could pay down the line, doing so would weaken the fund balance the council is rebuilding. He said the recommended approach was to consolidate now and leave additional draws to a future mayoral request.
Next steps: the finance office and city attorney will finalize closing documentation and notify the council when the formal note is executed.
