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Board recommends using SPLOST funds to pay down GPO loan for East–West interceptor
Summary
Board discussed and voted to recommend that the city use SPLOST 5, 6 and 7 funds to prepay a GPO loan for the East–West interceptor project, with staff estimating interest savings of about $359,000 and asking for clearer materials before commission action.
Utility staff presented a proposal to the board to use available SPLOST funds to partially prepay a GPO loan tied to the East–West interceptor project. Staff provided an approximate payoff figure and projected interest savings of about $359,000; they proposed reallocating $615,000 from SPLOST 5 as part of the payment and adjusting subsequent SPLOST requests.
Board members asked for additional detail before the item goes to the city commission, including clearer explanations of the payoff amount, the loan’s current rate (staff said the loan rate is very low and noted an attached schedule), and consequences for future borrowing capacity. One board member noted the payoff could free up debt capacity for future sewer projects, while others cautioned some commissioners may prefer to preserve low-interest loan structures.
After discussion the board voted to recommend to the city commission that the city use SPLOST funds to pay the loan, with direction to staff to provide more detailed arithmetic and rationale when the item goes before the commission.
