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Albany board recommends using SPLOST funds to seek early payoff of interceptor loan, citing interest savings
Summary
The utility board voted to recommend the City Commission consider using SPLOST 5, 6 and 7 funds to pay off an outstanding GPO loan for the East–West interceptor, which staff said would save about $359,000 in future interest; members asked for a more detailed explanation and supporting documents before the commission acts.
The Albany Utility Board on Oct. 9 recommended that the City Commission consider applying SPLOST funds toward an early payoff of a GPO loan used for the East–West interceptor project, staff said.
Staff told the board they contacted GPO and received an estimated payoff amount; they said early payoff would reduce future interest costs by about $359,000. The recommendation would use funds from SPLOST 5, 6 and 7 — staff said application of those sales-tax proceeds could allow the city to close out referendum items and free borrowing capacity for future projects.
Board members pressed for clearer documentation and a fuller explanation when the recommendation goes to the City Commission. One member asked that the board provide a more detailed explanation of which SPLOST accounts the funds would come from and how long-term borrowing capacity would be affected. Staff noted that the quoted payoff figure is time‑sensitive and would change if action were postponed.
Proponents argued the payoff would reduce indebtedness and open up debt capacity; skeptics cautioned that the loan’s historically low interest rate and the relative cost of borrowing mean the city should weigh pros and cons before proceeding.
After discussion, the board moved, seconded and voted to forward the recommendation to the City Commission for consideration. Staff will prepare the resolution and supporting materials for the commission record.
