Columbus, Georgia

Agenda Item # ______



Columbus Consolidated Government

Council Meeting



June 08, 2004



Agenda Report # ______





TO: Mayor and Councilors



SUBJECT: 1993 Special Local Option Sales Tax Closeout



INITIATED BY: Finance Department



Recommendation: Approve an ordinance to declare excess proceeds of the 1993

Special Purpose Local Option Sales Tax (?SPLOST?) in the amount of $14,709,308

and close the 1993 SPLOST Fund by amending the Debt Service Fund in the amount

of $13,709,308 and transferring $1,000,000 to reimburse the 1999 SPLOST Fund

for funds used to complete the Trade Center Project.



Background: A referendum held in Muscogee County in March 1993 approved the

imposition of a SPLOST to raise a maximum total amount of $169,418,600 for the

following capital outlay projects: combined sewer overflow facilities, public

safety administration building, parks and recreation projects, sidewalks, and a

civic center. These projects were funded with SPLOST, private/public

partnerships, grants, donations, interest income, and other financing sources.

All of these projects are now complete and/or contractually obligated. Through

cost saving measures, grants, donations, and accrued interest earnings, excess

SPLOST proceeds in the amount $14,709,308 remain in the 1993 SPLOST Fund.



Legal Considerations: O.C.G.A ? 48-8-121(g) states that excess proceeds ?shall

be used solely for the purpose of reducing any indebtedness of the county other

than indebtedness incurred pursuant to this article.?



Recommendations: Apply excess 1993 SPLOST monies in the amount of $14,709,308

as follows:



1) Amend the Debt Service Fund in the amount of $13,709,308, which is

determined as follows:



(a) Amend the Debt Service Fund by $10,195,000 to complete the Columbus

Building Authority Lease Revenue Bonds, Series 2001, which bonds were currently

refunded and redeemed on February 1, 2004. This amendment is necessary to

change the total approved budget.



(b) (b) Transfer $3,514,308 to the Debt Service Fund to offset an anticipated

future millage increase in FY05. In doing so, this will provide funding to pay

off existing debt and provide additional debt capacity and flexibility.



2) Transfer $1,000,000 to reimburse the 1999 SPLOST Fund. Resolution No.

67-03 authorized an allocation of 1993 SPLOST proceeds to complete the

Columbus, Georgia Convention & Trade Center until payments or reimbursements

from the State of Georgia were received. Upon determining that the State

funding would be delayed, construction and renovation of the Trade Center was

accomplished through the use of proceeds received from the sale of the Columbus

Building Authority Lease Revenue Bonds, Series 2004 (the ?Series 2004 Bonds?),

as authorized by Resolution No. 520-03. Since monies were available from the

1993 SPLOST, we reduced the cost of issuance of the Series 2004 Bonds and

offset an anticipated millage increase in the Debt Service Fund by $1,000,000

from the 1993 SPLOST. We will reimburse the 1999 SPLOST Fund for construction

costs borne by the fund.



Financial Considerations: The excess 1993 SPLOST proceeds transferred to the

Debt Service Fund will offset an anticipated millage increase of 0.27 mills

needed to service the Series 2004 Bonds. This will provide the City with

additional debt capacity and flexibility in the Debt Service Fund.



Analysis: The proposed ordinance declares the excess proceeds from the 1993

SPLOST, closes the 1993 SPLOST Fund, and distributes the excess proceeds to

various funds. These excess proceeds will be used to pay off existing debt,

offset the millage rate in the Debt Service Fund, and complete the Trade Center

transaction. The distribution of excess 1993 SPLOST revenues will provide

funds for identified activities which Council wishes to accomplish.



AN ORDINANCE

NO.



AN ORDINANCE TO DECLARE EXCESS PROCEEDS OF THE 1993 SPECIAL PURPOSE ONE PERCENT

OPTION SALES TAX (THE ?1993 SPLOST?) IN THE AMOUNT OF $14,709,308 AND CLOSE THE

1993 SPLOST; TO AMEND THE DEBT SERVICE FUND IN THE AMOUNT OF $13,709,308; TO

TRANSFER UP TO $1,000,000 TO REIMBURSE THE 1999 SPLOST TO COMPLETE THE TRADE

CENTER PROJECT.



WHEREAS, the Council of Columbus, Georgia (the ?Council?) unanimously adopted

Resolution No. 33-93 on January 19, 1993 imposing a special purpose one percent

sales and use tax (the ?1993 SPLOST?), subject to the requirement of referendum

approval, which approval was received in a referendum held in Muscogee County

on March 16, 1993; and



WHEREAS, the terms of Resolution No. 33-93 included descriptions of the

projects to be funded with revenues raised from the 1993 SPLOST, which projects

consisted of combined sewer overflow facilities, a public safety administration

building, parks and recreation, sidewalks, and a civic center; and



WHEREAS, Council has adopted resolutions to revise the estimated costs of the

capital outlay projects approved by the voters, and establish funding of the

projects with proceeds of the 1993 SPLOST, grants, donations, interest income,

and other sources; and



WHEREAS, all 1993 SPLOST projects have been completed or contractually

obligated; and



WHEREAS, Council has been informed that excess proceeds of the 1993 SPLOST in

the amount of $14,709,308 remain in the 1993 SPLOST Fund; and



WHEREAS, O.C.G.A ? 48-8-121(g) states excess proceeds ?shall be used solely for

the purpose of reducing any indebtedness of the county other than indebtedness

incurred pursuant to this article?; and



WHEREAS, Council adopted Resolution 24-01 requesting that the Columbus Building

Authority issue its Lease Revenue Bonds, Series 2001 (the ?Series 2001 Bonds?)

for the purpose of financing certain projects for the use and benefit of

Columbus; and



WHEREAS, the Series 2001 Bonds were currently refunded and redeemed on February

1, 2004 with the excess proceeds from the 1993 SPLOST; and



WHEREAS, Council wishes to offset the millage in the Debt Service Fund through

the use of excess proceeds from the 1993 SPLOST.



NOW, THEREFORE, THE COUNCIL OF COLUMBUS, GEORGIA HEREBY ORDAINS:



SECTION 1.



1. Excess proceeds of the 1993 SPLOST remain in the amount of $14,709,308.



2. The excess 1993 SPLOST proceeds in the 1993 SPLOST Fund shall be applied as

follows:



a. The Debt Service Fund is amended in the amount of $10,195,000 to complete

the Columbus Building Authority Lease Revenue Bonds, Series 2001.



b. $3,514,308 shall be transferred from the 1993 SPLOST Fund to the Debt

Service Fund to offset the millage in the Debt Service Fund.



c. $1,000,000 shall be transferred to the 1999 SPLOST Fund to reimburse said

fund for monies paid therefrom to complete the construction of the Columbus,

Georgia Convention & Trade Center.



SECTION 2.



All ordinances or parts of ordinances in conflict with this ordinance

are hereby repealed.



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Introduced at a regular meeting of the Council of Columbus, Georgia,

held on the _____ day of June, 2004; introduced a second time at a

regular meeting held on the day of June, 2004 and adopted at said

meeting by the affirmative vote of members of said Council.





Councilor Allen voting ___________________.

Councilor Anthony voting__________________.

Councilor Davis voting____________________.

Councilor Henderson voting________________.

Councilor Hunter voting___________________.

Councilor McDaniel voting_________________.

Councilor Rodgers voting__________________.

Councilor Suber voting____________________.

Councilor Pugh voting_____________________.

Councilor Woodson voting__________________.



______________________________ ______________________________

TINY B. WASHINGTON ROBERT S. POYDASHEFF

CLERK MAYOR