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DeKalb committee approves parameters for up to $450 million water and sewer revenue bonds
Summary
The Finance, Audit and Budget Committee approved a parameters resolution authorizing the county to pursue up to $450 million of water and sewer revenue bonds and to begin the validation, ratings and sale preparation process; the committee added clarifying language limiting proceeds to necessary costs.
The DeKalb County Finance, Audit and Budget Committee voted to approve a parameters resolution authorizing the county to pursue the issuance of water and sewer revenue bonds in an aggregate principal amount not to exceed $450,000,000.
The committee’s action clears the way to begin the validation and investor‑market work needed to sell a bond issue, including meeting with rating agencies, assembling the sale team and preparing the official statement, but does not itself finalize any sale, county staff said. "This agenda item authorizes us to issue up to $450,000,000 of bonds with a maximum interest rate not to exceed 6% and a maximum maturity of 30 years," an unidentified county finance staff member said during the presentation.
Committee members added wording to the resolution’s purpose clause to limit proceeds to financing the "necessary" cost of acquisition, construction and equipping of water and sewer system improvements. Commissioner Massiah raised concerns about issuing more capacity than the county expected to spend and asked whether language could be included to tie the bond amount to the county’s projected capacity; after discussion the committee agreed to amend the motion to add the word "necessary" to the purpose section.
County staff outlined the planned timetable: staff expects to solicit bids from underwriters, accept the lowest interest cost bidder, and then return the committee to approve final interest rates, maturities and sale terms. Staff warned that if the county accepts bids but cannot execute the sale immediately, the bids should be canceled because underwriters take orders in anticipation of immediate execution.
The committee voted on the parameters resolution by voice vote; Chair Ted Terry announced the motion carried. Committee members said the change adding "necessary" was intended to reassure members that proceeds would align with projected capital needs and to reduce the risk of negative arbitrage. County staff and bond counsel will return with the final sale documentation when market timing and bids are available.
Votes at a glance
- Series 2025 Water and Sewer Revenue Bond Parameters Resolution (not to exceed $450,000,000): approved by voice vote; chair announced motion carried. The committee added the word "necessary" to the purpose clause.
What happens next
Staff will proceed with the validation and rating‑agency steps and prepare an official statement. The committee will be brought back to approve final pricing and maturities after bids are received.
