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Commissioners approve county resolution to close Public Facilities Authority revenue bond sale for jail expansion
Summary
Bullock County commissioners unanimously approved a county resolution enabling closing on revenue bonds issued through the Public Facilities Authority to fund a jail expansion after financial advisers reported favorable sale results and credit ratings.
Bullock County commissioners unanimously approved a resolution authorizing execution of documents tied to a Public Facilities Authority revenue bond sale that will fund a portion of a planned jail expansion.
Davenport & Company financial adviser Christopher Holt told the board the bonds sold competitively earlier the same day and that Wells Fargo submitted the winning bid at the lowest true interest cost. Holt said Moody’s and S&P assigned the county double-A ratings for the transaction and that the sale produced a premium that allowed the county to issue about $58.2 million in bonds while funding about $61.6 million into the project fund.
The result reduced the county’s projected total debt service. Holt said the original planning estimate for total debt service was roughly $84.5 million; final pricing reduced that figure to about $78.9 million, a savings of roughly $5.5 million compared with the earlier plan. He said the county structured principal payments in the first six years to align with $51 million of SPLOST proceeds earmarked for the project.
County Attorney Jeff Akins told the board the bonds had been validated and that closing logistics are scheduled for Aug. 21. Commissioners voted to approve the county resolution after Holt’s presentation; the clerk announced the motion carried unanimously.
Discussion and next steps at the meeting focused on executing closing documents and completing short-close logistics before the scheduled Aug. 21 closing. Holt said a supplemental resolution adopted by the Public Facilities Authority earlier that day was part of the transaction and that a short close would follow county approval.
The presentation included detailed pricing slides and cash-flow illustrations; Holt said the appendix to the presentation shows the cash flow calculations and how SPLOST collections were projected to cover early debt service. The county attorney, financial adviser and bond counsel will complete the closing documents and satisfy closing requirements before funds are delivered.
