To

Mayor and Council

Subject

Redemption of Columbus Building Authority Bonds 2001

Initiator

Finance Department

Recommendation

Request a resolution authorizing and directing the prepayment of all basic \n \n rent, together with other fees and charges pursuant to the Lease contract by \n \n and between the Columbus Building Authority (CBA) and City of Columbus dated as \n \n of February 1, 2001 related to the issuance of $10,195,000 of CBA Lease Revenue \n \n Bonds, Series 2001 from excess proceeds from SPLOST funds; to direct the CBA to \n \n redeem all outstanding Series 2001 bonds on February 1, 2004; to request \n \n conveyance of all property subject to the lease from the authority to the City \n \n of Columbus; to authorize the Mayor and other officials of Columbus to take \n \n further actions as necessary to provide the prepayment of the lease and the \n \n call and redemption of the Series 2001 bonds; and for other purposes.

Approval

Approved

Background

On February 1, 2001, Columbus Building Authority issued revenue bonds on

behalf of the City of Columbus in the amount of $10,195,000. These bonds

were used for the Computer Technology Upgrade, Additional Funding for Jail

Expansion, Security/Safety Enhancements, and Upgrade of Analog Microwave

System. The bonds featured an optional redemption provision which would

allow for them to be redeemed before maturity. At the direction of the City

of Columbus, the whole amount or part of the bonds could be redeemed. This

resolution begins the process to activate this provision so that notice can be

provided to the Bond Registrar and Paying agent. This process must begin at

least 40 days prior to the date fixed for redemption and shall be given one

time not less than 30 days, nor more than 60 days prior to the registered

owners of the Bonds.

Analysis

As a part of the Resolution 33-93 which establishes the 1993 SPLOST, excess

proceeds shall be used to reduce the indebtness of the City. Approximately

$12 million has been identified as excess proceeds. This resolution begins

the process to redeem the 2001 bonds and consequently reduce the City's

indebtness.

Financial Considerations

If the 2001 Bonds are not redeemed, the millage for debt service in FY05 could

be increased from 1.23 mills to approximately 1.9 mills which would be an

increase of 0 .67 mills. The millage rate may vary because growth in the

digest is not taken into consideration; a lower millage rate would be required

once this is factored into the calculation.

Projected Annual Fiscal Impact Statement

Legal Considerations

Authorization is needed from City Council to direct the CBA to redeem the bonds

and execute the process.

Recommendations/ Actions

Request a resolution authorizing and directing the prepayment of all basic

rent, together with other fees and charges pursuant to the Lease contract by

and between the Columbus Building Authority (CBA) and City of Columbus dated as

of February 1, 2001 related to the issuance of $10, 195,000 of CBA Lease

Revenue Bonds, Series 2001 from excess proceeds from SPLOST funds; to direct

the CBA to redeem all outstanding Series 2001 bonds on February 1, 2004; to

request conveyance of all property subject to the lease from the authority to

the City of Columbus; to authorize the Mayor and other officials of Columbus to

take further actions as necessary to provide the prepayment of the lease and

the call and redemption of the Series 2001 bonds; and for other purposes.

No attachments for this document.