Agenda Item # 1
Columbus Consolidated Government
Council Meeting
October 27, 20093
Agenda Report # 436
TO: Mayor and Councilors
SUBJECT: Recovery Zone Bond Allocations
INITIATED BY: Finance Department
Recommendation: Approve a resolution authorizing the Mayor to sign the Recovery
Zone Bond Notice of Intent to Issue.
Background: On August 20, 2009, the Georgia State Financing and Investment
Commission (GSFIC) took action to officially recognize the Recovery Zone Bond
(RZB) allocations made by the United States Department of Treasury. The
American Recovery and Reinvestment Act of 2009 created two new bond programs
for local governments: Recovery Zone Economic Development Bonds and Recovery
Zone Facility Bonds. The ability of local governments to use both types of
Recovery Zone bonds expires on December 31, 2010. The allocation for the City
of Columbus is $2,090,000 of Recovery Zone Economic Development Bonds and
$3,135,000 for Recovery Zone Facility Bonds. The Recovery Zone Economic
Development Bonds are for public infrastructure and facilities. The Recovery
Zone Facility Bonds are tax-exempt private activity bonds for financing
economic development.
Analysis: The Notice of Intent to Issue is due by November 2, 2009. The local
government may, at any time, waive its Recovery Zone Bond allocation by
adopting a resolution of waiver and providing written notice to the Georgia
Department of Community Affairs. The Recovery Zone Bonds will be evaluated
during the bond issuance process for any project that meets the
qualifications. The Recovery Zone Bonds will be utilized if the city will
realize a savings.
Alternatives: If the City of Columbus does not submit the Notice of Intent to
Issue, the allocation will be deemed waived and available by the State to be
re-allocated.
Financial Considerations: The Recovery Zone Economic Development Bonds has an
option to issue as tax credit bonds or ?direct pay? taxable bonds that will
benefit the borrower with a 45% direct subsidy from the US Treasury on interest
payments. The Recovery Zone Facility Bonds are issued for private projects, is
tax-exempt, and has no cash subsidy from the Treasury.
Legal Considerations: Council action is required to authorize the Mayor to sign
the Recovery Bond Notice of Intent to Issue.
Recommendations/Actions: Approve a resolution authorizing the Mayor to sign
the Recovery Bond Notice of Intent to Issue.
A RESOLUTION
No. _____________
WHEREAS, the American Recovery and Reinvestment Act of 2009 created two new
bond programs for local governments: Recovery Zone Economic Development Bonds
and Recovery Zone Facility Bonds; and,
WHEREAS, the Georgia State Financing and Investment Commission (GSFIC) took
action on August 20, 2009 to officially recognize the Recovery Zone Bond
allocations made by the United States Department of the Treasury; and,
WHEREAS, the City of Columbus allocation for Recovery Zone Economic Development
Bonds is $2,090,000 and Recovery Zone Facility Bonds is $3,135,000; and,
WHEREAS, the City of Columbus is required to submit a Notice of Intent to Issue
to confirm the allocation; and,
WHEREAS, the City of Columbus can choose to waive the allocation at any time by
resolution.
NOW, THEREFORE, THE COUNCIL OF COLUMBUS, GEORGIA HEREBY RESOLVES:
The Mayor is hereby authorized to submit the Recovery Bond Notice of
Intent to Issue in the allocation amounts listed above.
___________________
Introduced at a regular meeting of the Council of Columbus, Georgia,
held the _________day of _____________, 2009 and adopted at said meeting by the
affirmative vote of _____________members of said Council.
Councilor Allen voting __________.
Councilor Henderson voting __________.
Councilor Hunter voting __________.
Councilor McDaniel voting __________.
Councilor Turner Pugh voting __________.
Councilor Woodson voting __________.
___________________________________ _____________________________
Tiny B. Washington, Clerk of Council , Mayor
Attachments
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