Community Authority Refinances Infrastructure Debt

On December 1, 2017, the Authority repaid the remaining $3,190,000 in bonds outstanding on from the 2011 Series D Infrastructure Bond issue. On December 14, 2017, the Authority issued $9,210,000 in new Infrastructure Bonds (Series E) for construction of Road Infrastructure Improvements in the Beech Road south area. The term of the bonds is 15 years, to be repaid from the Infrastructure Fund. The Authority’s sole source of repayment for these bonds is from income taxes collected by New Albany from employees and businesses in the Business Park EOZ’s. The Authority receives 30% and 50%, respectively, from Phase I and Phase II of the gross income tax revenues collected by New Albany within the EOZ.

In 1997, the Village of New Albany created an Economic Opportunity Zone (EOZ) in the Business Campus/Park. In addition to the EOZ, New Albany and the Authority created a Multi-Purpose Infrastructure Improvement fund to provided funding for certain infrastructure improvements in the Business Campus/Park. In 1997, the Authority issued $10,000,000 in Multi-Purpose Infrastructure Improvements Bonds for the first phase of projects. In 2000, a second phase of projects created the need for the Authority to refund the bonds and issue an additional $6,700,000 to bring the total to $16,700,000 of Infrastructure Bonds outstanding. In 2004, the Authority again refunded the bonds reducing the total to $16,100,000. In addition to the refunding in 2004, New Albany and Authority through an Economic Development Agreement created the Economic Development Fund (EDF) to promote development within the Economic Opportunity Zone. The EDF sole funding is from the surplus funds in the Infrastructure Bond Service Fund. Each year New Albany directs the Authority to transfer funds to the EDF from the Infrastructure Surplus based on terms defined in the Economic Development Agreement. New Albany also directs the Authority to disburse funds from the EDF for certain New Albany council approved projects. Between 2004 and 2011 the Authority repaid a total of $7,300,000 of those bonds reducing the total to $8,800,000. On May 2, 2011, the Authority Board authorized an $800,000 bond payment and the sale of up to $7,000,000 in fixed rate bonds and $2,000,000 in one-year notes to retire $8,800,000 of existing Infrastructure Improvement Bonds. On May 26, 2011, the Authority refunded the issued $5,900,000 in 10-year fixed rate bonds and $2,000,000 in a one-year note. The Authority also retired $900,000 of the amount outstanding. On March 27, 2014, the Authority Board authorized the retirement of the remaining $1,750,000 of the original $2,000,000 one-year notes issued in 2011.