Agenda Item #
Columbus Consolidated Government
Council Meeting
August 14, 2012
Agenda Report #
TO: Mayor and Councilors
SUBJECT: Columbus Building Authority Lease Revenue Refunding Bonds, Series 2012
INITIATED BY: Finance Department
Recommendation: Approve a resolution requesting the Columbus Building Authority
to issue Lease Revenue Refunding Bonds in the aggregate principal amount to
refund and defease the 1999C, 2003A, and 2003B Columbus Building Authority
Bonds; 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 refunding bonds.
Background: The Columbus Building Authority Taxable Lease Revenue Bonds, Series
1999C and 2003B, and the Columbus Building Authority Lease Revenue Bonds,
Series 2003A were issued to complete specific projects. The Columbus Building
Authority Taxable Lease Revenue Bonds has an outstanding principal amount of
$5,040,000 and final maturity in 2019. The Columbus Building Authority Lease
Revenue Bonds has an outstanding principal amount of $31,555,000 with a final
maturity in 2033. The Columbus Building Authority Taxable Lease Revenue Bonds
has an outstanding principal amount of $9,300,000 with a final maturity in
2033. By refunding these bonds, the Columbus Consolidated Government will
realize savings in the lease payments made to the Columbus Building Authority
and thereby reduce the principal and interest payments of these bonds.
Analysis: The amounts budgeted for principal and interest payments for FY13
will be used to in the computation of the refunding bonds. The anticipated
savings of this refunding will reduce the principal and interest payments over
the life of the bonds by an estimated $5.5 million.
Alternatives: The alternative to refunding these bonds is to continue to make
higher principal and interest payments.
Financial Considerations: The principal and interest payments are paid from the
Debt Service Fund and the refunding will provide an estimated savings of $5.5
million over the life of the bonds.
Legal Considerations: Council action is required to authorize the Columbus
Building Authority to refund these Lease Revenue Bonds.
Recommendations/Actions: Approve a resolution requesting the Columbus Building
Authority to issue Lease Revenue Refunding Bonds in the aggregate principal
amount to refund and defease the 1999C, 2003A, and 2003B Columbus Building
Authority Bonds; 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 refunding bonds.
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