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City hears plan to use SPLOST-backed bonds to jump-start Decatur Square transformation
Summary
Davenport & Company outlined a plan for a competitive public sale of SPLOST-backed bonds to finance an estimated $8 million of Decatur Square work, describing rating, issuance timing and an illustrative non-callable 5% coupon structure that would produce roughly $1.8 million in annual debt service under current assumptions.
City financial advisers from Davenport & Company presented a proposed plan of finance for borrowing against the renewed SPLOST to help pay for the Decatur Square transformation.
Doug Gephart told commissioners that following the Nov. 23 SPLOST renewal — which staff said carried broad local support — the city may issue up to $10 million of general obligation debt authorized by voters and could use a competitive public sale to achieve the lowest possible interest cost. "As part of the November 23 referendum, DeKalb County as a whole renewed the SPLOST," Gephart said. "SPLOST began back in April '24 and will continue for a period of roughly six years."
Davenport’s plan assumes an $8,000,000 project fund, and the advisers described a short-term, non-callable structure that uses a higher coupon paid in cash (illustratively 5%) while investors pay a premium upfront. Under the assumptions presented, the city would issue roughly $7.9 million of bonds and see estimated annual debt service near $1.8 million; final numbers depend on construction bids and market conditions.
Gephart said the team will seek rating reviews from Moody’s and S&P and prepare a preliminary official statement to market the bonds; staff anticipates awarding construction contracts March 17, completing rating work in March, and potentially having funds available in late April if the schedule holds.
Commissioners asked about the 5% coupon, refunding risk and issuance costs; advisers said non-callable bonds and competitive sales are market-standard approaches meant to lock in lower rates despite greater upfront issuance work and credit‑rating fees.
No formal action was requested at the presentation; staff said the commission will consider formal approvals and contract awards at future meetings.
