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Athens council fast-tracks $17.2 million sewer project funding with federal loan forgiveness component
Summary
City council suspended rules and adopted an ordinance to consolidate financing for the long-running city source system improvements project, authorizing up to $17.2 million in Sew er Fund spending; officials said $8 million of that qualifies for principal forgiveness and loans carry 0% interest for 30 years.
Athens City Council voted unanimously to suspend the rules and adopt Ordinance 97-25 at first reading on Sept. 15, authorizing the service safety director to commit up to $17,200,000 from the sewer fund for all phases of the City Source System Improvements Project (project 330). The action was taken to consolidate multiple prior financing steps for a multi-year infrastructure program.
The ordinance matters because it compiles previously approved financing for decades-old wastewater infrastructure, and because city officials said part of the package includes $8 million in principal forgiveness from a regional funding authority. “We were identified for $8,000,000 for loan forgiveness,” Service Safety Director Stone told the council, adding the city obtained 0% interest financing with a 30-year repayment schedule.
Council and staff described the financing as a mix of 0% long-term loans and principal forgiveness that will reduce the effective principal owed after project completion. Stone said the $17.2 million authorization will be drawn down as subprojects are built; the principal reduction (forgiveness) will be applied before loan repayment begins. Acting Mayor Crowell and council members said the work also supports a pollution-prevention and regionalization objective: replacing failing local infrastructure while enabling connections from county properties previously on septic systems.
Council suspended the rules to meet project timelines and then adopted the ordinance by unanimous vote. No additional amendments were added during the session.
Budget and next steps: Staff said the $17.2 million authorization covers all phases; after construction the principal will be reduced by the $8 million forgiveness and the city will begin repayment on the remaining principal under the 0% loan terms. The service safety director and finance staff will proceed with contract and drawdown steps described in the ordinance.
Why it matters: Council members and staff noted the project replaces long-dated sewer infrastructure and enables regional wastewater connections. The combination of 0% financing and principal forgiveness was presented as the primary fiscal rationale for accelerating adoption.
Where it stands: Ordinance 97-25 was adopted at first reading after the council voted to suspend the normal multiple-reading rule requirement, and staff will proceed with implementing the financing and construction phases as laid out in the ordinance.
