Since the Development

Authority of Peachtree City formed nine years ago it has accrued a debt

of $1.46 million. Feeling that a majority of this debt came from capital

projects, they would like to eliminate this debt once and for all.

Their plan

to extinguish the debt is to issue bonds, but attorney Mark Oldenburg

addressed the Development Authority at their meeting Monday night and

told them they would need to do some things first to make this a successful

venture.

The first of

the four tasks Oldenburg mentioned was that the authority would have to

adequately document revenue and expenses for the amphitheater as well

as the tennis center and economic development. Earlier in the meeting

the authority listened to a comprehensive budget presentation by Donna

Romeo, director of the Frederick Brown Jr. Amphitheater, and the authority

expects to see a similarly professional budget presentation for the tennis

center and economic development at their next meeting.

Secondly, Oldenburg

stated that they would need to make sure that an issuance of bonds can

be used and that the tennis center and amphitheater are indeed development

authority type activities, meaning that they promote trade, commerce and

employment activities. This, too, is something the authority feels it

has a good handle on.

The third task

will require the authority to differentiate between what was used for

capital expenses and operating expenses in the past. This means that they

will have to go back into their books, how far back is not known yet,

to find what they spent the $1.46 million on. They may need to hire someone

to do a limited forensic audit but all members are hoping that they will

find the necessary information in an easy to use format and sooner rather

than later.

The last step

is to get more of a solid agreement on the hotel/motel tax with the city.

This will require an intergovernmental agreement and Dr. Bob Brooks suggested

a workshop with the City Council to hammer out an agreement. Mayor Steve

Brown, who was in attendance, was agreeable to that approach.

If the authority

gets all its ducks in a row, they may issue bonds at some point in the

near future. It could be a successful endeavor and would eliminate the

debt quickly without a long term loan. Oldenburg cited the Water and Sewer

Authority as a group that successfully issued bonds, claiming they sold

approximately $15 million in bonds in close to 15 minutes. To be that

successful, everything needs to be in order and the Development Authority

is working on it.