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Gainesville council authorizes $2026 water/sewer revenue bond; $95 million to construction fund
Summary
The council unanimously approved a supplemental resolution authorizing Series 2026 water/sewer revenue bonds; the underwriter reported a bond yield just under 3.57% and an all-in cost of about 3.85%, with $95 million initially deposited to the construction fund and a planned closing Jan. 13, 2026.
The Gainesville Mayor and Council unanimously approved a supplemental resolution authorizing the Series 2026 water and sewer revenue bonds on Dec. 16.
Financial advisor Bill Camp (Raymond James) told the council the bonds were priced in the current market with an average life of about 13 years, a bond yield just under 3.57% and an all-in cost of roughly 3.85%. Camp said the issue sold at premiums that will allow $95,000,000 to be deposited into the city’s construction fund, with bond proceeds to be wired and available at closing on Jan. 13, 2026. He said debt-service payments begin in May 2026 and the last principal and interest payment is scheduled for Nov. 15, 2046.
Camp noted Gainesville’s strong ratings (Moody’s AA2 and S&P AA) and said coverage for the water and sewer system is favorable — roughly three times revenues available to pay debt service — and that robust coverage and ratings reduced borrowing costs. He compared the city’s pricing favorably to other Georgia issuers and said small differences in yield (basis points) equate to material dollar amounts on the transaction.
City manager introduced the supplemental resolution (BR2025-52) and the council moved, seconded and approved the measure unanimously. Bond counsel and city staff were present to confirm validation steps already taken in Hall County Superior Court and to confirm closing documents would be finalized ahead of the Jan. 13 wire.
City officials said the construction fund proceeds will be invested as projects proceed and used to finance water and sewer system improvements outlined in the transaction.
