BRADENTON, Fla. - Atlanta Mayor Kasim Reed told attendees at his second-term inauguration that he plans to request a referendum in 2015 seeking up to $250 million in bonds to pay for infrastructure.
"As I stand here right now, the city of Atlanta faces an infrastructure backlog of more than $900 million," Reed said Jan. 6. "If we do not take this on, it will grow to be $1.1 billion and then to $1.5 billion, and soon as almost occurred with our city's pension system we will face a crisis we cannot solve."
Reed said he would appoint a blue ribbon panel to focus on eliminating waste in city government that would be a "vital step in preparing the city for a 2015 bond offering."
Determining how much can be saved by eliminating wasteful spending will help city officials figure out the size of the bond issue, Reed told local publications before the inauguration.
The debt will not increase property taxes, he said, and the proceeds will be used to expand green spaces, and improve roads, bridges and sidewalks.
Reed, a Democrat and native of Atlanta, was re-elected to a second term Nov. 5 winning with 84% of the vote against three challengers.
Last January, he began the year by telling local organizations that he planned to propose that the city issue about $300 million of bonds for infrastructure needs to begin addressing a backlog that had grown to an estimated $922 million.
While that did not move forward in 2013, one of Reed's largest accomplishments during the year was brokering a deal for the city to issue $200 million in bonds as part of the financing for the Atlanta Falcons new $1.2 billion National Football League stadium.
The remaining cost will be paid through a $200 million loan from the National Football League's G-4 program and $800 million from team debt, equity, and personal seat licenses.
The bonds are expected to be sold early this year by Invest Atlanta, the city's economic development agency.
