Duluth Saves Taxpayers Money
Refinancing 2003 bonds issued for Duluth Public Safety Center at lower interest rate expected to save $725,000 over life of the issue.
The Duluth City Council’s decision to refinance a 2003 bond issue that funded construction of the Public Safety Center at a lower interest rate will save taxpayers about $725,000 over the life of the issue. This is more in savings than an earlier estimate of $535,000.
The council passed a resolution that authorizes refinancing $7,095,000 in revenue bonds through Sun Trust Bank at its Nov. 12 meeting. The bonds are being refinanced at an interest rate of 1.63 percent. The interest rate on the 2003 bond issue was 4.1 percent. The new bonds mature in 2024.
Councilman Billy Jones commended Duluth Finance Manager Ken Sakmar for suggesting the refinancing.
Also, the council also agreed to adopt an intergovernmental agreement that allows the city to share revenue from a one percent energy excise tax expected to be imposed by Gwinnett County.
The Gwinnett County Commission is scheduled to vote on implementing the energy excise tax that would apply countywide to utilities used in manufacturing at its Nov. 27 meeting.
The energy excise tax would replace a sales tax on energy that would be phased out over a four-year period starting Jan. 1, 2013. The city would receive an estimated $264,000 of the $10 million generated countywide by the energy excise tax when the phase in/out process is completed. The change, the result of action by the Georgia General Assembly, would reduce the amount of SPLOST funds the city receives.
If Duluth doesn’t participate, it would not receive any of the energy excise tax revenue, which would still be collected by the county.
An ordinance annexing 3.5 acres off Peachtree Industrial Boulevard, where Georgia Stage LLC. is located at 3765 Crest Drive, into the city was adopted by the council. Georgia Stage manufactures theater curtains. The annexation was requested by the property owner. The council also rezoned the property to M-1 (manufacturing), the same rezoning it had in the county.
On the recommendation of city staff, the council rejected five bids opened Oct. 18 for construction of a canoe launch on the Chattahoochee River at Rogers Bridge Park because bidders did not meet qualifications. The project is going to be re-advertised for bids. Even with the delay, the canoe launch is expected to be completed in the spring.
Mayor Nancy Harris and the council recognized Bradley Carroll, who has served on the city’s Finance Committee for eight years. He was presented with a plaque in appreciation of his service.
A hearing on an appeal by Missy’s Retreat, a salon/massage business located on Peachtree Industrial Boulevard, was cancelled after the owner agreed to accept a seven-day suspension for violating the city’s massage ordinance and withdrew the appeal. The suspension starts at 9 a.m. Nov. 15.