MOULTON — The City Council approved a bond issue Monday to clear the path for the demolition of the old national guard armory and building of a new fire station in Moulton.

The new bond issue refinances a 2000 bond and gives the town $2 million to build the facility. The new bond’s interest rate is lower. The old issuance was financed at 4.17 percent while the new bond is issued at 3.03 percent — equaling $74,746 less in interest over the life of the 24-year bond.

The general obligation bond issue was handled by Raymond James Morgan Keegan in Birmingham. The presentation Monday was made by Larry Ward.

At a previous meeting, Moulton Mayor Ray Alexander said original plans to convert the old National Guard Armory into a fire station were scrapped after the architect said it would cost more to convert the old building than build a new fire station.

The money from the bond issue will be combined with a grant of $375,000 for construction. Alexander said he is optimistic that all $2 million will not be needed for the fire station. Left over funds will be used on other city projects.