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Board backs recommending SPLOST funds to partially pay off interceptor loan
Summary
The utility board recommended that the city commission use SPLOST 5, 6 and 7 funds (and an identified $615,000 allocation) to partially or fully pay off the GPO loan for the East‑West interceptor, with staff citing approximately $359,000 in interest savings and a payoff figure shown in the meeting attachment.
The Albany Utility Board on Oct. 9 voted to recommend that the city commission consider applying SPLOST funds to pay down a loan used for the East‑West interceptor project.
City finance staff reported an estimated payoff figure documented in the agenda attachment (staff stated a figure in the roughly $10 million range) and told the board the early payoff would save about $359,000 in future interest. Staff proposed shifting $615,000 from prior SPLOST allocations to reduce the balance charged to SPLOST 6 and noted the figure in the packet was calculated as of Oct. 31; staff said the exact payoff figure would change with time and should be confirmed in commission materials.
Board members asked how early payoff would affect borrowing capacity and noted that USDA/financial arrangements (GPO financing) historically carried low rates. Members requested a more detailed explanation and pros/cons for the city commission packet. The board approved the recommendation to forward the proposal to the city commission by roll call.
Next steps: staff will prepare resolution language and detailed attachments for the city commission showing exact payoff figures and the proposed SPLOST accounting adjustments.
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