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Albany utility board recommends city use SPLOST funds to pay off low‑interest GPO loan
Summary
Staff told the board paying off a GPO loan for the East–West interceptor with SPLOST 5, 6 and 7 funds could save roughly $359,000 in interest; the board voted to recommend the city commission consider early payoff and requested more detailed materials before commission action.
The Albany Utility Board on Oct. 9 recommended that the city commission consider using SPLOST funds to pay off a GPO loan taken for the East–West interceptor project, a move staff said would modestly reduce future interest costs while altering how SPLOST balances are allocated.
Finance staff presented an early‑payoff analysis and read a payoff figure received from GPO during the meeting record; staff said using existing sales‑tax‑derived SPLOST balances could save "about $359,000 worth of interest in the future." Staff also proposed reallocating $615,000 from SPLOST funds previously noted for Holloway Drainage toward the payoff, which would reduce the SPLOST 6 request accordingly.
Board members discussed tradeoffs: one said the loan's interest is extremely low and paying it off would reduce an available low‑cost borrowing source; another said clearing the loan could restore borrowing capacity for future sewer projects. The chair asked staff to prepare a detailed explanation for the city commission to outline pros and cons, timing sensitivity (staff warned the payoff number would change if delayed) and impacts on other SPLOST commitments.
After discussion, the board moved and seconded a recommendation that the city use SPLOST 5, 6 and 7 funds to pay off the loan; the motion carried on roll call. Staff will deliver supporting documentation and a clear explanation to the commission before any formal action there.
