Wednesday, June 18, 2003
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Wednesday, June 18, 2003 |
Development Authority taking first steps to issue bondsBy MICHAEL
BOYLAN
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.
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