To fund necessary repairs and upgrades at city-owned facilities and finance two existing loans, the Peachtree City Council is expected to sign off on a revenue bond for up to $6 million at its regular meeting Thursday night.
The bond will include $3 million in improvements and the refinancing of two loans totaling $6 million. The loan refinancing will save the city a projected $148,000, officials said.
The city will be on the hook for repaying the bonds, with the debt service for the bonds and refinancing estimated to cost $634,000 a year over a 10-year period.
Among the $3 million in projects is some $454,000 set aside to replace the bubble that is erected over the Kedron pools for the off-season and $405,000 in repairs to several city fire stations. Also on the plan is $500,000 to expand the parking lot at the city’s Baseball and Soccer Complex to its full capacity.
Funds also will be used for repairs at ballfield restrooms, replacement of the surface at the All Children’s Playground, tennis court repairs and more.
Another project includes $100,000 for repairs to the cast house at the city’s amphitheater.
The $2.6 million in refinanced projects includes the remaining $1.88 million in principal from a bricks and mortar loan from 2007 and the remaining $746,000 in principal from an energy performance contract which resulted in energy-saving fixtures being installed in city buildings to save on utility costs.
Officials have said the bond will pay for capital improvements only, not for any operating expenses or routine maintenance.
Part of the reasoning for using a revenue bond was because the city has run out of capacity for financing through its lease-purchase program.
In conjunction with the bond financing, the city has undergone a credit rating process with Moody’s Investors Service along with Standard and Poors, officials said in a memo to council. Moody’s increased the city’s rating from AA-2 to AA-1, and S&P kept the city’s AAA credit rating unchanged.
In other business, council is expected to:
• Continue a moratorium on businesses identified as “pain management clinics” because of the potential for increased prescription narcotics abuse;
• Consider roof repairs for the Public Works administration and Fire Station 82 facilities at $44,880;
• Consider hiring a full-time administrative assistant for the human resources department, which will increase its staff from two to three persons;
• Consider a one-year contract to hire a part-time intern for the city’s planning department; and
• Consider a request to change the name of Cooper Circle to Sany Boulevard.
