Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the Municipal Finance topic
No spam. Unsubscribe anytime.
Dalton holds first reading of $130 million utilities revenue bond to finance new power plant
Summary
Council presented a first reading of a bond ordinance to issue $130 million in combined utilities revenue bonds for a proposed ~57 MW power plant; staff said bonds would be backed by utility revenues and no vote was taken — the ordinance requires a second reading.
City staff presented a first reading on March 16 of Ordinance 26-05 to authorize issuance of City of Dalton combined utilities revenue bond series 2026 in the principal amount of $130,000,000 to fund construction of a new roughly 57-megawatt power plant.
John (staff) described the financing structure: the proposed bonds are revenue bonds that would be pledged against utility revenues rather than the city’s general-tax pledge. He said that approach separates utility debt service from general-government debt and noted that, under reasonable assumptions, local generation capacity could reduce the city’s future wholesale power costs. He characterized the project as potentially “very viable” compared with long-term wholesale purchases and estimated annual cash-flow savings on the order of $2 million for equivalent capacity compared with market purchases.
Council members asked for clarity on city responsibilities and on whether the financing would affect broader city borrowing capacity; staff reiterated that utility revenues, not general-tax revenues, would be pledged. The ordinance was presented as a first reading; no council action occurred that evening. City staff said the measure requires two readings before the council can act and it will be scheduled on a future agenda for a second reading and possible adoption.
Because the item was a first reading, council did not record a vote. Staff committed to return with additional details and formal ordinance language at the next hearing for deliberation.
