To

Mayor and Council

Subject

Trade Center Expansion - SPLOST Project

Initiator

Finance Department

Recommendation

Approve a Resolution allocating '99 Special Purpose Local Option Sales Tax \n \n (SPLOST) in an amount not to exceed $22-million and to authorize payment or \n \n reimbursement to the Sales Tax Proceeds Account from the State of Georgia for \n \n the completion of the Columbus Georgia Convention and Trade Center expansion.

Approval

Approved

Background

The Trade Center Expansion was included in Resolution No. 395-99 imposing the

1999 SPLOST. The renewal of the SPLOST was approved by referendum on November

2, 1999. The Resolution included project descriptions and estimates of the

costs and plans for financing each of the projects, which estimates were based

on the best information then available.



The total cost of the Trade Center expansion is estimated at $35-million. $25

million from the State of Georgia; $5-million from '99 SPLOST; and $5-million

from the Columbus Building Authority Lease Revenue Bonds, Series 2003. The

SPLOST funding was estimated at $5,000,000 plus financing costs. This project

was identified in the funding plan as a candidate for inclusion in the General

Obligation Sales Tax Bonds authorized in the referendum. The General

Obligation Sales Tax Bonds, Series 2003 included the $5,000,000 for the Trade

Center Expansion.

Analysis

The '99 SPLOST funding and the Columbus Building Authority Lease Revenue Bonds

have been expended on this project as of January 31, 2003. The Consolidated

Government has received $3-million of the $25-million commitment from the State

of Georgia for this project. Due to economic conditions at the state level, we

do not anticipate receiving any portion of the remaining $22-million until FY

04 and beyond. This creates a cash flow deficit for this project until the

state funding is received. The Trade Center expansion is well underway and

we are contractually obligated for the construction contract.

Financial Considerations

The original '99 SPLOST funding plan allocated funds to each project on a

fiscal year basis based on estimated draw schedules. In the initial two and

one-half years of the tax, there are numerous projects that have not come

online as anticipated and/or draw schedules have changed from the original

estimates. This has created excess cashflow in the overall '99 SPLOST proceeds

account that can be allocated to cure the cash flow deficit of the Trade Center

Project. Additionally, there are interest earnings on the '99 SPLOST proceeds

and interest savings recognized from issuance of the bonds at lower interest

rates than originally estimated.



This Resolution authorizes the budget for the Trade Center project to be

increased incrementally in an amount not to exceed $22-million. When the state

funds are received, the '99 SPLOST proceeds account will be reimbursed by that

amount. We do not anticipate delaying any of the existing '99 SPLOST projects

in order to accommodate the Trade Center project.

Projected Annual Fiscal Impact Statement

Legal Considerations

Council has the authority to allocate additional '99 SPLOST funding to projects

within reason provided they were part of the original project plan.

Recommendations/ Actions

Approve a Resolution allocating '99 Special Purpose Local Option Sales Tax

(SPLOST) in an amount not to exceed $22-million and to authorize payment or

reimbursement to the Sales Tax Proceeds Account from the State of Georgia for

the completion of the Columbus Georgia Convention and Trade Center expansion.

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