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Albany board recommends using SPLOST funds to pay off interceptor loan early
Summary
Board voted to recommend the city commission use SPLOST 5, 6 and 7 funds to pay off a GPO loan for the East‑West interceptor, citing about $359,000 in interest savings; staff will prepare detailed resolutions and explanations for commission consideration.
The Albany Utility Board recommended on Oct. 9 that the city commission use sales‑tax (SPLOST) funds to pay off a GPO loan tied to the East‑West interceptor project.
Staff said the current payoff figure quoted by GPO is approximately $10 million (staff read the precise payoff number from GPO materials) and estimated interest savings around $359,000 if paid early. To cover part of the payment, staff proposed reallocating $615,000 from SPLOST 5 and adjusting the amounts requested in SPLOST 6 and 7. Board members discussed the low effective interest rate of the loan (staff referenced an effective rate under 1% in the supporting attachments) and how early payoff could modestly increase the city's short‑term borrowing capacity for sewer projects but would also consume SPLOST funds earmarked for future projects.
Members asked for a fuller pros‑and‑cons package for the city commission that explains the payoff amount, how SPLOST balances will be adjusted, and what projects might be deferred. After discussion, the board moved and approved a recommendation that the commission pursue payoff using SPLOST 5, 6 and 7 funds; staff will bring resolutions and the requested detail to the commission for final action.
Board members noted the tradeoff of using one‑time capital to reduce long‑term interest expense and asked staff to show how the decision affects future debt capacity and project prioritization.
