Georgia city system to borrow $18 million

Thursday, April 10, 2014

During its regular meeting on April 1, the City Schools of Decatur Board of Education voted to borrow $18 million for school construction projects.

The borrowing is in the form of certificates of participation, or COPS financing. COPS works as a lease-purchase agreement, allowing the school system to use its assets as collateral. Under the proposed financing agreement, City Schools of Decatur would transfer title for Clairemont, Glennwood and Oakhurst Elementary Schools to the Georgia Municipal Association. GMA would then sign a lease with the city school system. This lease agreement will be the basis for borrowing $18 million.

The school board voted unanimously to authorize issuing certificates of participation.

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