Complete Document - City of Auburn

City of AuburnOverview of Debt Policy and Outstanding Debt!" 1999 Five Mill Tax Fund Capital ProjectsIn August 1999, the City issued a $3,700,000 million general obligation warrant to finance theconstruction of a new municipal Library ($3.2 million) and the renovation of the existing library and oldCity Hall buildings for use as office space ($500,000). The construction of the new Library wascompleted in April 2001. The renovation of the office space is ongoing and completion is anticipatedin April 2003. Debt service on the $3,700,000 issue is paid from the Five Mill Tax Fund.!" 2001 Five Mill Tax Fund Capital ProjectsIn May 2002, the City issued a general obligation warrant for $7,250,000 to finance the construction ofa new Soccer Complex ($2.5 million), park improvements ($2 million) and cemetery development ($2million). The construction of the Soccer Complex is scheduled to begin in the January 2003. Thepark improvements and cemetery developments are expected to begin in October 2003. Debt serviceon the $7,250,000 issue is paid from the Five Mill Tax Fund.Auburn City Board of Education IssuancesIn February 2002, the City issued general obligation school warrants for $27,275,000. The warrantswere issued to refund several outstanding debt issues totaling $14,794,570 and to provide funding of$12,480,430 for additions and renovations to existing schools. The construction projects includeadditions to two elementary schools, one middle school, the junior high school and the high school.The expected completion date on these construction projects is September 2003. The renovationsprojects include upgrades to three elementary schools, the junior high school and the high school.School Board debt is repaid from property taxes received by the City, which are earmarked foreducation purposes. Debt service on the $27,275,000 issue is paid from the Special School AdValorem Tax Fund.Other Recent DebtIn fiscal year 2001, the City issued a two general obligation warrants. The first issuance was in April2001 for $428,000 to purchase land to develop future park property. The second issuance was inSeptember 2001 for $1,035,400 to finance various drainage improvements. Debt service on theseissuances is paid from the General Fund.The City entered into several capital leases in fiscal 2001, totaling $1,075,342. The capital leaseswere issued to pay for the following capital equipment items:• Police vehicles ($353,803)• Telephone system ($218,492)• Fire truck refurbishment ($177,000)• Garbage truck ($147,904)• Pothole patch truck ($92,367)• Recycling Truck ($85,776)The terms of the capital leases range from three to five years.The City issued a general obligation warrant for $1,937,000 in June 2002 to finance various drainageimprovements, street improvements and computer system improvements. Debt service on thiswarrant is paid from the General Fund.Assessment Projects FinancingUnder the State law, Alabama cities may construct public improvements that will benefit specificproperty owners and then assess the costs of the improvements to those property owners. The City of65