Authority advances AKB sewer project financing after confirming GMP and bond timetable

The Spalding County Water and Sewage Facilities Authority received updates on the AKB progressive design-build sewer project and took steps to complete bond financing documents at its April 16 meeting.

General Manager Johnson told the board the submitted Guaranteed Maximum Price (GMP) for the AKB project is $19,458,235; that figure includes an approximately $1,995,000 previously committed for phase 2A. The manager said the authority had submitted the project application on March 31 and that four property closings/easements remain to be scheduled.

Bond underwriters and advisors (Raymond James, Ralph Tellis and Murray Barnes and Finister) are requiring a financial feasibility study to accompany a proposed 2025 revenue bond issuance because the authority plans to proceed without county backing. Staff engaged a firm to provide the feasibility work, and most requested project and financial documents have been supplied to the bond team, Johnson said. The authority’s preliminary assessment by Raymond James indicated a rating in the double-A range, which staff said would yield competitive interest rates; staff also noted county backing would reduce rates further.

The board approved available bond documents and a reimbursement resolution needed prior to issuance, and staff said the bond timetable requires weekly steps through mid-June and a court hearing the week of Memorial Day to allow issuance. Board members emphasized the compressed schedule and the need to meet the court calendar to avoid increased financing costs.

The authority also discussed covenants associated with revenue bonds, including a required minimum debt service coverage ratio; staff told the board they will implement fiscal guardrails to avoid covenant defaults.