Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the Finance topic
No spam. Unsubscribe anytime.
Council approves ordinance permitting Spartanburg Water to refund bonds
Summary
On first reading, council approved an ordinance allowing Spartanburg Water System to refund up to $26.5 million in water-system revenue bonds; staff said the system’s bonds are repaid from its operating revenues and not city general funds.
City council approved an ordinance on first reading that permits the Spartanburg Water System to refund existing water-system revenue bonds and issue new series bonds in an amount not to exceed $26,500,000.
City Attorney Bob Koehler explained state law requires city permission for Spartanburg Water System to issue refunding revenue bonds even though the utility operates independently. Koehler said the utility previously carried refunding bonds in 2012, 2015, 2017 and 2020 and is seeking to refund bonds issued in February 2015 by borrowing in 2025 to pay off the 2015 series.
Koehler and council emphasized that payments on the bonds will come from Spartanburg Water System operating revenues and do not obligate the city’s general fund. Staff also noted the utility has its own board of commissioners, budget, employees and legal counsel and is distinct from the city government, though the mayor participates in certain governance roles.
A motion to approve the ordinance carried; the transcript records the vote as “Aye” with no opposition recorded.
