The City of South Fulton council voted to establish a Public Facilities Authority and appointed initial members and officers in a 7-0 action during a special called meeting. City Manager Sharon D. Subudan and outside advisers said the PFA is a state-authorized conduit the city can use to issue bonds to finance public facilities.

Bond timing and rationale: financial advisers told the council that the city is seeking to borrow funds to pay for a new police headquarters and a new fire headquarters and related facilities. Counsel and advisers explained the financing structure: the authority would issue bonds and enter into an intergovernmental contract with the city, and the city's payments under that contract would secure bondholders. Bond counsel Doug Selby described the usual structure: “the authority would issue bonds, they would enter into intergovernmental contract with the city; the city would make payments to the authority under the intergovernmental contract and that's pledged to secure the bond holders.”

City officials and advisers said the city intends to seek roughly $96,000,000 in bond proceeds (the figure presented included insurance costs), with the city contributing about $20,000,000 from saved funds. Staff also cited a guaranteed maximum price for construction of approximately $113,000,000. City Attorney and advisers said removing the charter millage-rate cap would allow the city to provide “full faith and credit” security and, in turn, lower interest costs and increase the principal amount the city could access; advisers characterized the PFA as a financing tool that several Georgia cities use for similar projects.

Public comment and council debate: several residents who attended the hearing expressed opposition to eliminating the millage-rate cap. Connie Robinson, a grassroots organizer representing more than 60 homeowners associations, said the cap should remain: “We do not want that removed.” Mel Keaton, a resident of District 4, urged more transparency and said residents are worried about significant tax increases by analogy to other municipal cases.

Council members disagreed on process and timing. Some members urged slowing the PFA timeline, opening appointments to qualified resident candidates with municipal-bond experience, and scheduling a fuller public presentation on the cap and financing before any final decisions. Others said the charter-required appointments and the PFA structure are customary and that the council can proceed under the law; bond counsel and advisers said the PFA must be formed and officers named to meet the planned financing schedule.

Appointments and next steps: the council named several members and officers to the newly created PFA during the meeting and directed staff to convene an initial PFA meeting to adopt bylaws and organize. City staff said the PFA planned to meet on the upcoming Tuesday ahead of the next council meeting to organize; staff also stated the authority would not itself hold assets or manage city operations but would function as a financing conduit under Georgia law. Council members said a fuller presentation on the millage-rate cap, project cost details and financing alternatives will be provided at an upcoming advertised meeting so residents and council members can ask detailed questions before bond issuance votes.