03-11-1993 Special Called MeetingSpecial Called meeting
March 11, 1993
A special called meeting of the Mayor and Council was held March 11, 1993, at
7:25 p.m. The meeting was called to order by presiding officer Mayor A. Max
Bacon. All council members were present. Also present was City Clerk Melinda
Dameron, City Administrator Bob Thomson, City Attorney Chuck Camp, Al Cochran,
Finance Director Jim Triplett, Ben Watkins of Sutherland, Asbill & Brennan and
Gordon Mortin of Lex Jolley & Associates, DDA members Willouise Spivey, Hubert
Black, C. J. Fouts, Jimmy Wilson and Doug Stoner. Gordon Mortin, Lex Jolley &
Associates, and Ben Watkins, Sutherland, Asbill & Brennan, were also present.
Mr. Watkins, Sutherland, Asbill & Brennan, discussed the lowered interest rates
and the benefits of refinancing the outstanding bonds on the Community Center and
the Library. He reviewed the two separate bond issues in 1989 and 1990 to
finance the new facilities. He indicated that the interest rates on the tax
exempt market have dropped to make it advantageous for the Authority to go into
the market and issue refunding bonds. The schedule was accelerated in order to
lock into the low interest rates that are now available. The present value
interest rate savings that were achieved on the marketing of the bonds yesterday
was a gross savings of $1,166,858 and a present value savings of $711,000
essentially. The gross interest rate savings is $1,167,000 between now and the
year 2016 which is the year when the last bonds are retired, Smyrna will save
$1,167,000 by doing this refinancing.
Gordon Mortin, Lex Jolley & Associates, explained the transactions being moved
ahead of schedule has been an extraordinary effort on the part of the City staff,
Ed Wall and Ben Watkins. He informed the DDA that Moody's of New York released
and confirmed the A-1 rating which is an excellent rating. The bond issue size
is $11,985,000, the underwriters discount is $119,850, the original issue
discount is $132,000; the bond issue will close on the 13th of April but the
bonds are dated March 1, 1993, consequently there is $74,000 in interest that is
accruing from the 1st of March but you don't have the benefit of the bonds or the
refunding so for that period of time we are going to pay to you the interest that
is accruing on the bonds so that the City does not actually start incurring a
cash interest liability until the 13th of April. He then indicated that the
proceeds from the bonds will be paid to the DDA to put in the sinking fund for
the bonds towards the next interest payment. Mr. Mortin then indicated it will
be necessary to purchase escrow investments, which is a portfolio of U.S.
Treasury Securities, which will pay the interest on the bonds that we are
refunding until the bonds are called and the first call date is 1999. The total
bond issuance cost is $120,000 giving a total bond issue proceeds of
$11,806,736.15; the total savings from this is $1,166,858.75. He stated this
represents a reduction in debt services for Fiscal Year 1993 of $183,955 and then
approximately $40,000 a year thereafter.
Finance Director Jim Triplett made a recommendation to the Mayor and Council that
the presented resolution be adopted.
Ron Newcomb made a motion that the adoption of the resolution amending and
restating the lease contract between the Mayor and Council and the DDA as
described by Ben Watkins, bond counsel for Southerland, Asbill & Brennan, be
approved. The motion was seconded by Bill Scoggins. The motion was approved 7-
0.
This meeting was adjourned at 7:32 p.m.
A. MAX BACON, MAYOR
A'
PATRICK, W 1
;Kd
BILL CO GINS, YARD �
CK C ER, WARD 5
CHARLES PETE WOOD, WARD 7
/MEELLINDA DDAMERON, CITY CLERK
RON NEWCOMB, W)qD 2
M . HAWKI N% WARD 4
S . LNEN1`CKA SWARD 6
RESOLUTION OF THE MAYOR AND COUNCIL
OF THE CITY OF SMYRNA, GEORGIA APPROVING THE
ISSUANCE OF MULTIFAMILY HOUSING
REVENUE BONDS BY THE
HOUSING AUTHORITY OF THE CITY OF SMYRNA, GEORGIA
FOR THE BENEFIT OF WALTON PARK, L.P.
WHEREAS, the Housing Authority of the City of Smyrna,
Georgia (the "Authority") has considered the application of Walton
Park, L.P., a Georgia limited partnership (the "Borrower"),
requesting the Authority's assistance in the financing of the
acquisition, construction and installation of a certain project
consisting of approximately 204 multifamily housing units located
on Land Lot 481 and 482, 17th District, Cobb County, South Cobb
Drive, Smyrna, Georgia (the "Project), through the issuance of
approximately $8,000,000 in aggregate principal amount of its
Housing Authority of the City of Smyrna, Georgia Multifamily
Housing Revenue Bonds (Walton Park Apartments Project), Series
1993 (the "Bonds") and the Hearing Officer of the Authority held a
public hearing on behalf of the City of Smyrna, Georgia (the
"Governmental Unit"), with respect to such proposed financing of
the Project on March 23, 1993; and
WHEREAS, Section 147(f) of the Internal Revenue Code of
1986, as amended (the "Code"), provides that the governmental unit
having jurisdiction over the issuer of revenue bonds and over the
area in: which any facility financed with the proceeds of the
revenue bonds is located shall approve the issuance of such
revenue bonds; and
WHEREAS, the Authority issues its revenue bonds on
behalf of the City of Smyrna, Georgia, the Project is located in
the City of Smyrna, Georgia and within the jurisdiction of the
Housing Authority of the City of Smyrna, Georgia, and the Mayor
and Council of the City of Smyrna, Georgia constitutes the
applicable elected legislative body of the Governmental Unit;
NOW, THEREFORE, BE IT RESOLVED by the Mayor and Council
of the City of Smyrna, Georgia, and IT IS HEREBY RESOLVED by the
authority of the same, as follows:
Section 1. The issuance of the Bonds by the Authority
for the benefit of the Borrower in a principal amount currently
estimated at approximately $8,000,000 to assist in the financing
of the Project is hereby approved to the extent required by said
Section 147(f) of the Code, as follows:
(a) the Project consists of approximately 204
multifamily housing units located on Land Lot 481 and 482,
17th District, Cobb County, South Cobb Drive, Smyrna,
Georgia, and within the jurisdiction of the Authority;
(b) the initial owner, operator or manager of the
Project is the Borrower; and
(c) the amount of bonds to be issued is approximately
$8,000,000.
Section 2. Such approval by the Mayor and Council of
the City of Smyrna, Georgia does not constitute an endorsement to
a prospective purchaser of the Bonds of the creditworthiness of
the Borrower or the Project, and the Bonds shall not constitute an
indebtedness or obligation of the State of Georgia or of any
county, municipal corporation or political subdivision thereof but
the Bonds shall be payable solely from the revenues derived from
the Borrower and pledged to the payment thereof and no owner of
the Bonds shall ever have the right to compel any exercise of the
taxing power of said State or of any county, municipal corporation
or political subdivision thereof, nor to enforce the payment
thereof against any property of said State or of any such county,
municipal corporation or political subdivision.
Section 3. This resolution shall take effect
immediately upon its adoption.
This 5th day of April, 1993.
(CORPORATE SEAL)
Attest:
City Clerk
CITY OF SMYRNA, GEORGIA
00
By:
Mayor
-2-
CLERK'S CERTIFICATE
I, the undersigned City Clerk of the City of Smyrna,
Georgia (the "City"), DO HEREBY CERTIFY that the foregoing pages
of typewritten matter constitute a true and correct copy of the
Resolution adopted on April 5, 1993, by the Mayor and Council of
the City of Smyrna, Georgia, and that the original of said
Resolution appears of record in the Minute Book of the City which
is in my custody and control.
GIVEN under my hand and the official seal of the City of
Smyrna, Georgia, this 5th day of April, 1993.
(CORPORATE SEAL)
City Clerk, City of Smyrna, Georgia
-3-