It won’t require a tax increase, but the Peachtree City Council is facing a decision in coming months on a proposed second round of funding for improvements and repairs to facilities and amenities.
If the maximum amount of $2.5 million is funded, the city would pay off the bond in 10 years at a cost of $298,000 a year, according to Finance Director Paul Salvatore. That cost is already built into this year’s budget, he added.
The Peachtree City Council is expected to vote Thursday night on a resolution that would allow the city to pay for some of the facilities bond projects in advance using cash reserves, which would then be replenished with proceeds from the loan, Salvatore explained.
The list of projects, and the bond financing plan itself, won’t be finalized until the new year, as it will be vetted by the new council members who take office in January, Salvatore said. To add flexibility in case the new council has more projects to consider for facilities authority bond financing, the resolution for council Thursday night puts the bond ceiling at $3 million, Salvatore said. The current list of projects is hovering at $2.51 million, he added.
The city has used such bond funding through a facilities authority bond issued in 2011, and the $3 million in proceeds were used to repair and upgrade a myriad of city facilities from the library roof repair, the new bubble for the Kedron pools and resurfacing of tennis courts that had fallen into marked disrepair.
The funds were also used to repair the neglected Braelinn ballfields off Log House Road and also for a new roof and interior for the Glenloch Recreation Center.
The city’s “tax-supported” debt payments are projected to be at $3.44 million this year compared to a total general fund budget of $29.58 million. That figure is projected to gradually dip each year down to the $3 million mark by 2017, to $2.17 million by 2018 and to $1.52 million by 2020 as the city continues to pay off its long-term debts. One of the biggest long-term debts is for the general obligation bonds issued over the years. The city’s annual payment on those is upwards of $600,000 and the last payment is slated for the 2019 fiscal year.
The city is also continuing to use lease-purchase financing for heavy equipment such as fire trucks and public works vehicles along with computer and network upgrades. The city is expected to use about $1.6 million in lease-purchase financing this year, but the city is using “revolving” financing to cover the purchases since the city opened up room by paying off other lease-purchase instruments, Salvatore noted.
Like the facilities authority bond, the lease-purchase financing needed no increase in property taxes, Salvatore said.