Athens council hears staff explain jump in street-rehab fund and rising transportation debt

City staff told the Athens City Council that the street-rehab fund projection rose from about $1,400,000 to $1,800,000 in the most recent update, driven largely by an increase in debt service from roughly $250,000 to $600,000.

Service director said the city recalculated the debt it must pay after taking on transportation loans related to Simpson Avenue and the recently improved West Union Street. He said the projects’ costs increased between initial external funding and construction, partly because of expanded public requests and pandemic-era inflation, and the city borrowed from the State Infrastructure Bank to complete both projects.

"I don't like to carry transportation debt," the service director said, adding the city generally prefers to fund transportation capital improvements with state or federal grants leveraged with a local match. He said his office hopes to repay the loans as quickly as possible but acknowledged that debt service is now coming due for the West Union Street project.

Council members also asked about a sharp week-to-week change in the Water Fund’s supplies and services line. Administration reported that line rose from about $36,000 in the prior week to roughly $353,000 in the current update and said the increase appears to be related to general-fund administrative allocations assigned to the water and sewer proprietary funds. Staff committed to sorting the accounting detail and reporting back before the next meeting.

The discussion was informational; no formal action was taken on the street-rehab levy or the specific debt-repayment plan during the meeting.