To

Mayor and Council

Subject

G. O. Sales Tax Bonds Reimbursement Agenda Report

Initiator

Finance Department

Recommendation

Appove the Resolution authorizing the reimbursement of original expenditures \n \n for the Trade Center and Library Projects in the maximum principal amount of \n \n $10,000,000 from the sale of General Obligation Sales Tax Bonds, Series 2003, \n \n and to declare official intent to issue the Series 2003 Bonds in a principal \n \n amount not to exceed $32,000,000.

Approval

Approved

Background

A referendum held on November 2, 1999 approved the imposition of a Special

Purpose Local Option Sales Tax (SPLOST) for the raising of not more than

$255,441,322 for capital projects. The referendum also constituted the

approval of the issuance of general obligation debt in an amount not to exceed

$76,525,000 for projects other than roads, streets, and bridges.



On December 7, 1999 Columbus Council adopted Master Bond Resolution No. 573-99

authorizing the issuance of up to $76,525,000 in aggregate principal amount of

general obligation sales tax bonds in one or more series and also adopted

Supplemental Resolution No. 574-99 authorizing the issuance of $38,360,000 in

aggregate principal amount of genearl obligation sales tax bonds dated April 1,

2000 for defeasance of Columbus Building Authority, Series 1999B Bonds, funding

for the city parking garage, and funding for land acquistion and site

preparation for the library project.

Analysis

There remains $38,165,000 of general obligation debt authorization and the

Consolidated Government anticipates issuing $32,000,000 in General Obligation

Sales Tax Bonds, Series 2003 in January 2003 to provide funding in the amount

of $5,000,000 for the Trade Center Expansion/Renovation and $27,000,000 for the

library project.



It will be necessary, prior to issuance of the Series 2003 Bonds, to expend

proceeds of the SPLOST and/or general fund on the Trade Center and the Library

Projects and this Resolution declares the Consolidated Government's intent

under the Treasury Regulations, Section 1.150-2 to reimburse for such

expenditures from the bonds proceeds of the Series 2003 Bonds. The amount of

reimbursement will not exceed $10,000,000.

Financial Considerations

There is adequate cash flow available in the SPLOST proceeds account to provide

funding to the Trade Center and Library Projects in an amount not to exceed

$10,000,000 until issuance of the bonds in January, 2003, whereby the SPLOST

proceeds will be replenished by the bond proceeds. The availability of funding

is derived from timing of drawdowns for existing projects and contingencies

that will maintain adequate cash flow to all current projects. The principal

and interest payments on the Series 2003 bonds will be repaid during the term

of the tax from SPLOST proceeds.

Projected Annual Fiscal Impact Statement

Legal Considerations

Treasury Regulations and the SPLOST law allow for reimbursement of original

expenditures from the proceeds of general obligation sales tax bonds as

authorized by a referendum for imposition of a Special Purpose Local Option

Sales Tax (SPLOST).

Recommendations/ Actions

Appove the Resolution authorizing the reimbursement of original expenditures

for the Trade Center and Library Projects in the maximum principal amount of

$10,000,000 from the sale of General Obligation Sales Tax Bonds, Series 2003,

and to declare official intent to issue the Series 2003 Bonds in a principal

amount not to exceed $32,000,000.

No attachments for this document.