Albany Utility Board backs recommendation to use SPLOST funds to pay off GPO loan, asks for fuller documentation

At its Oct. 9 meeting, the Albany Utility Board voted to recommend that the city commission consider using SPLOST funds to pay off a GPO loan tied to the East–West interceptor project.

Staff presented an early-payoff analysis and stated an estimated interest savings of about $359,000 if the loan is retired early. Staff proposed reassigning $615,000 from a SPLOST allocation previously noted for Holloway Drainage and adjusting SPLOST requests for future cycles to accommodate the payoff. During the discussion staff said the loan was established through a GPO financing arrangement that carried unusually favorable terms compared with market bonds.

Board members asked several questions about the payoff amount and the fiscal trade-offs. Some members raised concerns about optics—using voter-approved SPLOST funds for debt retirement rather than new capital projects—and requested a fuller, written explanation for the city commission that documents the exact payoff figure, source accounts, projected savings and the effect on future borrowing capacity. Staff acknowledged the request and agreed to return with prepared resolutions and clarifying materials.

The motion to recommend the payoff to the city commission passed on a roll call vote. Board members stressed the need for clear materials for commission review, including the exact payoff figure and the staff analyses that support the stated interest savings.

Next steps: staff will prepare the resolution and supporting documentation for the city commission and provide the board with a clear explanation of the funds proposed to be used and the implications for future SPLOST programming and debt capacity.