To

Mayor and Council

Subject

GMA Lease Pool Annual Certification

Initiator

Finance Department

Recommendation

Approve an Ordinance authorizing the annual appropriation of all amounts \n \n required pursuant to Columbus? participation in the pooled lease program \n \n sponsored by Georgia Municipal Association. \n \n

Approval

Approved

Background

In 1990 the City entered into a master lease agreement with GMA pursuant to

which GMA may lease operating equipment to the City. Each sub-lease for

specific equipment is executed after Council approval. At present, the City

effectively has a line of credit equal to $4,453,164 through this program. The

provisions of the master lease require annual certification of certain facts by

the city. The attached Ordinance is prepared by GMA, and we are required to

adopt it at the start of each calendar year. This Ordinance will amend the

FY03 budget to appropriate the maximum amount we legally could be required to

pay in the 2003 calendar year for debt service bonds sold by GMA to fund the

lease pool. Our annual debt service has already been budgeted; this action

complies with the technical requirements of the 1990 lease agreement, but has

no impact on our current fiscal year financial activity.

Analysis

This action is a routine requirement of the 1990 GMA lease pool. In actuality,

GMA?s bonds sold to fund the pool are repaid with the lease payments of pool

participants and interest earned on unused bond proceeds. As a pool

participant, we have a legal obligation to pay a share of GMA?s debt service

and administrative fees if the interest earnings prove to be insufficient. We

are required to adopt this provision as if the pool was not earning interest on

investments.

Financial Considerations

This action will amend the FY 03 revenues and expenditures of the GMA Lease

Pool Fund, as noted in Schedule B by the amount of $763,284.

Projected Annual Fiscal Impact Statement

Legal Considerations

Pursuant to the Lease Agreement, Lessee is required to appropriate annually the

Minimum Annual Appropriated Amount set forth on Schedule A.

Recommendations/ Actions

Approve the attached Ordinance authorizing the annual appropriation of all

amounts required pursuant to the City's participation in the pooled lease

program sponsored by the Georgia Municipal Association.

No attachments for this document.