PTC borrows $3 million for facility fixes
Low bond interest rate helps city increase scope of work
Peachtree City will be hitting the bond market to raise $3 million for a host of critical improvement projects at city facilities.
The city is using a facilities authority to issue the bonds on its behalf.
In addition to the $3 million for improvements to city facilities and assets, council decided to refinance two other loans totaling $2.6 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 offseason and $405,000 in repairs to several city fire stations.
Also covered are 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. Also on the plan is $500,000 to expand the parking lot at the city’s Baseball and Soccer Complex to its full capacity.
City staff also expects to add more projects to the list in coming weeks, officials said.
Councilwoman Vanessa Fleisch, who chairs the city’s facilities authority that is being used to secure the low-interest financing, noted that the bond will pay for capital improvements only, and not for any operating expenses or routine maintenance.
The $3 million bond is expected to have a closing date near the end of October with a very favorable 2.31 percent interest rate.
City Finance Director Paul Salvatore said the low interest rate allowed the city to expand its original budget of $2.1 million to $3 million, all the while staying in the initial range of payments for the 10-year bond.
Councilman Eric Imker asked why the city was no longer pursuing financing through the bricks and mortar lease-purchase program. He was told that the city has reached the limits of that program, which requires the use of “essential government facilities” to be pledged.
“We are running out of a capacity of properties to pledge of that nature,” Salvatore said.
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.