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
