The Cobb County Board of Commissioners voted unanimously to issue nearly $27.6 million in bonds for new parks though still short of the $40 million parks bond referendum approved by Cobb voters in November 2008.
To fund the full $40 million, “an astronomical interest rate” would be needed and “no one would buy the bonds,” said Interim Finance and Economic Development Director/Comptroller William Volckmann.
However, the county was able to add nearly $2.9 million due to the county’s AAA credit rating at a 5 percent interest rate, Volckmann added.
With about $160,000 for bond costs, that total will be almost $27.6 million - instead of $24.7 million - that can be used to buy park land, he said.
Because of the economic recession and corresponding drop in county property values beginning in 2009 and continuing with a more dramatic drop in 2010, the decision was made by county officials not to proceed with the issuance of the $40 million at that time, Volckmann explained.
As required by Georgia law, the election resolution, the referendum and the original bond resolution set forth the principal amount to be paid in each year from 2010 to and including 2023, he said, which is why the originally authorized $40 million has decreased with each passing year.
Now the maximum principal amount authorized to be issued is $24.7 million, the total of the authorized principal amounts for 2018 through and including 2023 but also with the addition of nearly $2.9 million because of the county’s high rating, Volckmann said.
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