East Point advisers outline $45M financing options, warn hotel-motel tax won’t cover debt service alone

A financial advisory team and underwriters told the East Point City Council on July 14 that financing a proposed community recreation center with an added pool could require roughly $45 million and that the city should plan multiple revenue streams to repay debt.

The council heard a presentation from a city financial adviser and Marquita Jackson, lead underwriter at JPMorgan, who said a general obligation (GO) bond or an intergovernmental revenue contract would generally produce the most affordable borrowing costs. Jackson said the 20‑year tax‑exempt benchmark was around 4.3 percent and that local credit spreads would be added to that benchmark for the city’s rate.

Why it matters: The presentation tied a large capital decision — a new recreation center and a potential pool — to the city’s ability to identify reliable revenue sources for debt service. Council members pressed staff on how much hotel‑motel tax and special‑district revenues could reasonably cover, and whether additional projects (auditorium, old city hall or library work) should be bundled with the rec center in a single financing package.

Details from the presentation

Courtney (financial adviser)…