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Authority authorizes sewer capacity‑reservation negotiations, delays signing of phase‑2 contract to improve financing
Summary
The board authorized the general manager to begin negotiating sewer capacity reservation agreements tied to real property and discussed timing for signing the phase‑2 design/contract package; staff recommended delaying contract execution to June to secure more favorable financing terms.
The Spalding County Water Authority on Feb. 26 authorized General Manager Joseph Johnson to begin negotiating sewer capacity reservation agreements tied to real property and discussed delaying the Phase 2 contract for the county sewer project to improve financing terms.
Authority members said financial timing makes a June contract execution more attractive. In committee updates, board members reported that Raymond James advised waiting until June to call bonds without penalty and that delaying the contract would reduce overlapping bond payments. Joseph Johnson told the board, “As soon as we sign the contract, the cash flow that we’re gonna need on a monthly basis is about 1 and a half million dollars.”
The board also reviewed planning‑committee recommendations from December, including a consensus to direct the general manager to submit a will‑serve letter to a developer (Doug Adams) conditional on a letter of intent to fund. Members said the bond market and the project’s cash‑flow profile led staff and consultants to recommend moving the contract vote to June so financing looks more favorable and avoids potential double bond payments.
The board invoked an executive session under the Official Code of Georgia Annotated §50‑14‑3(b)(1) to discuss the acquisition, disposition or lease of real estate, then returned and voted to authorize the general manager to begin negotiations for sewer capacity reservations. The motion passed unanimously.
