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Utility board backs recommendation to use SPLOST funds to pay off interceptor loan
Summary
The board voted to recommend the city use SPLOST 5/6/7 funds to pay off the GPO loan for the East‑West interceptor, a move staff said would save about $359,000 in interest but would reallocate SPLOST balances; commissioners asked for a clearer explanation for the city commission.
The Albany Utility Board voted Oct. 9 to recommend the city pay off the outstanding GPO loan for the East‑West interceptor using a mix of SPLOST funds (SPLOST 5, 6 and 7), a proposal staff said would save roughly $359,000 in future interest.
Staff told the board they contacted GPO and received a payoff figure in the vicinity of $10 million (presentation materials show a quoted payoff near $10,076,049 but transcribed figures contained minor ambiguities). Board members and staff noted the loan carries a very low interest rate (attachments in meeting materials indicated a rate below 1%), and discussed tradeoffs: paying off the loan would free borrowing capacity for future sewer projects but would reallocate capital set aside for other projects and change planned SPLOST requests.
Several commissioners urged more detailed documentation and a clear explanation before city commission consideration. Chair and other members asked staff to prepare a full breakdown that clarifies the exact payoff amount, sources of funds (including $615,000 proposed from SPLOST 5/Holloway Drainage) and consequences for the utility’s borrowing capacity and upcoming referenda. The board passed the motion to recommend the early payoff and instructed staff to supply the requested details to the city commission.
The board recorded the vote by roll call; some members emphasized optics and the need to prioritize outstanding stormwater projects before reallocating funds to a loan payoff.
