Agenda Item #
Columbus Consolidated Government
Council Meeting
October 13, 20093
Agenda Report #
TO: Mayor and Councilors
SUBJECT: Columbus Building Authority Lease Revenue Bonds, Series 2010
INITIATED BY: Finance Department
Recommendation: Approve a resolution requesting the Columbus Building Authority
to issue Lease Revenue Bonds in the approximate amount of $131,500,000, plus
estimated issuance costs; requesting the Columbus Building Authority to issue
Lease Revenue Refunding Bonds to refund and redeem the outstanding Lease
Revenue Bonds, Series 1997A; authorizing the execution of lease contracts
between the Columbus Consolidated Government and the Columbus Building
Authority; and authorizing the Mayor, City Manager, Finance Director, City
Attorney, and other officials to take such further actions as is necessary to
provide for the issuance and delivery of the bonds and the refunding bonds.
Background: The 2009 Other Local Option Sales Tax was effective January 1,
2009. The Council of Columbus, Georgia has expressed their intent to utilize
70% of the new LOST revenue for enhancements to Public Safety and 30% of the
LOST revenue for roads and infrastructure improvements pursuant to Resolution
No. 226-08. Projects were identified to be funded from this LOST. The list of
projects was presented to the Council of Columbus on September 28, 2009. The
recommended funding source for these projects was the issuance of Columbus
Building Authority Lease Revenue Bonds with the lease payments equal to the
debt service payments funded from this LOST.
PROJECTS
Fire / EMS Station $ 2,000,000
Road Projects 31,100,000
Flood Abatement / Stormwater 23,200,000
City Service Center 9,500,000
Parking Garage 9,500,000
Natatorium 7,500,000
Recycling / Sustainability Center 8,500,000
Ice Rink 7,700,000
Correctional Facilities 31,000,000
Cooper Creek Tennis Center 1,500,000
TOTAL $131,500,000
Analysis: The proposed time line tasks from October 2009 ? January 2010 are to
draft the Preliminary Official Statement (POS) and Official Statement (OS),
complete the bond validation process, conduct rating agency visits with Moody?s
and S & P, receive bids and award the bonds.
Alternatives: The alternative to funding these projects through the issuance of
Columbus Building Authority Lease Revenue Bonds is pay-as-you-go. By utilizing
the pay-as-you-go method, the City would not be able to complete these projects
in a short period of time or take advantage of the current favorable
construction market.
Financial Considerations: The estimated annual revenue from the 2009 Other
Local Option Sales Tax for FY2010 is $28,800,000; $7,800,000 reserved for the
2011 rollback requirement, $14,700,000 allocated to Public Safety, and
$6,300,000 allocated to Infrastructure/Roads. After the rollback requirement
is met, future revenue allocations beginning in FY2012 is estimated to be $20.6
million for Public Safety and $8.8 million to Infrastructure/Roads. The annual
lease payments (debt service requirement) for the $131,500,000 is estimated to
be $2,310,000 from the Public Safety allocation and $6,895,000 from the
Infrastructure/Roads allocation.
The Refunding of the 1997A Columbus Building Authority Lease Revenue
Bonds is anticipated to save approximately $400,000 to $500,000 in the
remaining debt service payments. The 1997A Bonds mature April 1, 2017.
Legal Considerations: Council action is required to authorize the Columbus
Building Authority to issue Lease Revenue Bonds.
Recommendations/Actions: Approve a resolution requesting the Columbus Building
Authority to issue Lease Revenue Bonds in the approximate amount of
$131,500,000, plus estimated issuance costs; requesting the Columbus Building
Authority to issue Lease Revenue Refunding Bonds to refund and redeem the
outstanding Lease Revenue Bonds, Series 1997A; authorizing the execution of
lease contracts between the Columbus Consolidated Government and the Columbus
Building Authority; and authorizing the Mayor, City Manager, Finance Director,
City Attorney, and other officials to take such further actions as is necessary
to provide for the issuance and delivery of the bonds and the refunding bonds.
Attachments
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