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Board recommends using SPLOST funds to pay off GPO loan; staff says payoff would save about $359,000
Summary
Albany staff recommended and the utility board voted to recommend city commission approval to use SPLOST funds to pay off a GPO loan tied to the East–West interceptor project; staff said the payoff would save roughly $359,000 in interest but will require SPLOST reallocations and clearer explanation to the commission.
Albany staff told the utility board on Oct. 9 that early payoff of a GPO loan used for the East–West interceptor project could reduce the city’s future interest expense by about $359,000.
Staff presented a payoff figure of roughly $10,000,076.05 and proposed using existing SPLOST 5, 6 and 7 revenues to make the payment. As part of the recommendation, staff proposed reallocating $615,000 from prior SPLOST designations (Holloway Drainage) to contribute to the payoff and noted that SPLOST 6 request totals would be adjusted accordingly.
Board members pressed staff for more detail and asked that the item be packaged for the city commission with a clear, written explanation of the tradeoffs, including the effect on borrowing capacity and the fact that the loan’s current interest rate is unusually low. One board member said the loan rate itself has been “interest‑free money” relative to market conditions in the past and urged a full explanation for the commission and the public.
Staff said the current stated rate on the loan is about “4 and a half percent” in one part of the discussion and later clarified the recorded loan figure and the estimated payoff in the attachments to the agenda. The board voted to recommend to the city commission that the city utilize SPLOST 5, 6 and 7 funds to pay off the loan; staff cautioned that the payoff number would change if postponed.
What’s next: The board asked for a more detailed presentation for the commission, including an explanation of the SPLOST reallocations and the effects on future borrowing capacity and project prioritization.
