Birmingham City Council OKs $40M in GO Warrants, bonds for city projects

Birmingham's economic growth is contributing to the city's largest budget, according to Mayor William Bell. (Michael Tomberlin / Alabama NewsCenter)
On Tuesday, the Birmingham City Council unanimously approved $40 million in General Obligation Warrants and bond refinancing, which will allow for capital funding for a several improvement projects throughout the city including not limited to Legion Field, Bus Rapid Transit (BRT), Wylam Library and the Birmingham Crossplex.
More than $20 million of the funding will go toward the BRT project. Last year, the City Council last year approved the grant agreement with Federal Transit Administration for the $40 million project. The grant requires $20 million local match (50/50 match). The BRT aims to update Birmingham’s inner city public-transit system by connecting 25 neighborhoods from Woodlawn on the east side to Five Points on the west side

The financing consists of two parts as follows:

Approximately $40 million General Obligation Refunding Bonds

  • Refinances Series 2007A Bonds
  • Projected savings from lower interest rate is $7 million, with a net present value of $5.5 million
  • The net present value savings as a percentage of the principal amount of bonds being refunded is approximately 11.8 percent, indicated a very efficient refinancing transaction
  • True Interest Cost is approximately 3.18 percent
  • Savings will remain in the Bond Reserve Fund to be used for any future voted bond issue
  • Principal and interest payments will be over the same period as the outstanding bonds, through 2033

Approximately $40 million General Obligation Warrants

Warrant issue will provide capital funds for the following projects:

  • Bus Rapid Transit Grant Match: $20,000,000
  • BRT Additional: $1,750,000
  • Landfill Cell: $7,500,000
  • Industrial/Tech Park: $4,600,000
  • Legion Field Improvements: $2,250,000
  • Boutwell Improvements: $750,000
  • Central Library Stairs: $1,500,000
  • Wylam Library Additional Funds: $800,000
  • Crossplex Basketball Courts: $600,000