Auburn City Council will convene for the first meeting of October on Tuesday and will discuss the issuance of bonds for use in Auburn public schools.
The approval of these bonds, at a total of $37 million, was voted on by the city of Auburn voters in July.
At the Sept. 3 meeting of City Council, it agreed to issue the bonds to Frazer Lanier Company.
When these bonds were sold, since the rating for the city of Auburn is high, the city received an additional $4 million as the bonds were re-traded.
This brought the total close to $41 million, what the city of Auburn hoped to receive, said City Manager Jim Buston.
Bonds have a process that must be followed, which starts with deciding to acquire the bonds, much like a loan, said Buston.
Then with the bonds in hand, the city can enter the market to sell them for profit. The bonds that will be discussed Tuesday have already been sold. The board is just approving the sale.
“Those all go to pay off the debt for the public schools,” Buston said. “And that’s all it can be used for … this is the debt that will be accumulated in the renovation of Drake Middle School and the renovation of Cary Woods.”
The official issuance of the bonds must be completed by Oct. 17.
The funds will be used to “finance the design, acquisition, provision, equipping, construction and improvement of public school facilities, various school equipment and associated borrowing costs,” the e-packed provided by City Council said.
The issuance must be unanimously voted on by the board.
East Alabama Healthcare Authority
In addition to the public school funds, the council will also vote on an agreement with the East Alabmaa Healthcare Authority as part of the Fiscal Year 2020 Emergency Response, Rescue and Ambulance Service Agreement.
This agreement provides that East Alabama Healthcare Authority will provide different services needed such as emergency response, ambulatory needs and rescue to the City of Auburn.
The total cost of this agreement, which is a renewal of a previous contract, is $375,476.00. This is an increase of $26,000 from last year in addition to another $30,000 that will be used to replace ambulances.
City Council will vote on intersection improvements at North College Street and East University Drive/Shug Jordan Parkway.
The bid, placed by D & J Enterprises, Inc., would be awarded at $723,594.
Shug Jordan would be widened in this bid and allow for a turn lane heading south, on the left. East University would also be widened to accommodate a turn lane, on the right.
A traffic light would also be installed.