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Albany utility board votes to recommend using SPLOST funds to pay off GPO loan
Summary
The board recommended to the city commission that SPLOST 5/6/7 funds be used to pay off an outstanding GPO loan for the East‑West interceptor project, a move staff said would save roughly $359,000 in interest but would change the city's borrowing posture.
The Albany Utility Board voted on Oct. 9 to recommend that the city commission approve early payoff of a GPO loan used for the East‑West interceptor project, proposing to use a combination of SPLOST 5, 6 and 7 sales‑tax funds to cover the payoff.
Staff presentation and recommendation: staff told the board they had contacted GPO and provided a payoff figure (read during the meeting) and estimated the city would save about $359,000 in future interest by paying the loan early. Staff proposed reallocating $615,000 from SPLOST 5 and adjusting requests from SPLOST 6 and 7 to accommodate the payoff and to close out certain referendum line items.
Board discussion and concerns: members asked for a clearer, written explanation for the city commission packet that outlines the tradeoffs, including the fact that the loan is a historically low‑interest financing instrument and that paying it off could reduce debt capacity for future projects. One board member requested a full breakdown so commissioners and the public understand what is being repaid and what projects will be affected.
Decision and next steps: the board voted to recommend the SPLOST reallocation and asked finance staff to prepare detailed resolutions and explanatory materials for the city commission to review. Any reallocation or payoff will require city commission action and any related legal or budgetary steps the commission deems necessary.
Quote: a staff presenter summarized the fiscal effect, saying, "We would save about $359,000 worth of interest in the future."
What's next: Finance will prepare a resolution and supporting materials for the city commission and return to the board with clearer figures and attachments before the commission considers the recommendation.
