In this Proposed Annual Budget for the City of Valdosta Budget Meeting Wednesday afternoon, 3-8 PM, there are two bond series, one refinancing, the other new, both for water and sewer improvements.

Apparently the city has previously financed more than $32 million in loans from the Georgia Environmental Finance Authority (GEFA), and last year floated a bond at a lower interest rate for about $22 million still to be paid.

Even more interesting, if I am reading it correctly, this budget proposes a new bond for $67 million.

Maybe the Valdosta City government is getting more serious about fixing their sewer system problems.

This is all in addition to the water and sewer improvements paid for by Special Local Option Sales Tax (SPLOST) line items, by American Rescue Plan Act (ARPA) funds, or from other revenue; see below.

Extracts, Proposed FY 2025 City of Valdosta Budget

W&S 2020 Bond Series

• Purpose: Refinance GEFA notes at a lower interest rate
• Maturity Date: 2033
• Original Principal Amount: $32,134,000; July 1, 2023, Principal Outstanding $22,264,065
• Interest Rate: 2.29%
• Funding Source: Water and Sewer Revenue Fund

Pending for FY 25 – estimate
W&S 2024 Bond Series

• Purpose: Upgrades Water and Sewer
• Maturity Date: 2054
• Original Principal Amount: $67,000,000; July 1, 2023, Principal Outstanding $67,000,000
• Interest Rate: 4.5%
• Funding Source: Water and Sewer Revenue Fund

See page 49, Debt Service, FY 2025, City of Valdosta.

Pending for FY 25 – estimate, W&S 2024 Bond Series; Purpose: Upgrades Water and Sewer; Maturity Date: 2054; Original Principal Amount: $67,000,000; July 1, 2023, Principal Outstanding $67,000,000; Interest Rate: 4.5%; Funding Source: Water and Sewer Revenue Fund

The proposed budget, received in response to a LAKE open records request, is on the LAKE website.

We have been told the budget meeting is Wednesday, May 22, 2024, from 3-8 PM, presumably in Council Chambers in City Hall.

This meeting does not appear on the city’s online calendar. It’s also not in Agendas & Minutes, which does show the regular City Council Meeting for Thursday, May 23, as Cancelled.

Agendas & Minutes also shows a May 15 Special Called Meeting, which included this mysterious item: “2.b) Consideration of a request to approve an amendment to the Fiscal Year 2024 Budget for the City of Valdosta.” Maybe that was the new “Pending” bond.

The Proposed Annual Budget on Page 41 lists $11,213,500 in SPLOST 8 water and sewer FY 25 Capital Requested.

Page 41

It also shows $12,075,000 in ARPA funds for a new water plant, plus some Bond I funds with a note “WTP II Land & Design (TotalFY25: $36,500,000 LTD)”.

Also from Bond I is $4,361,000 + $2,436,000 for the Mud Creek WPCP, for expansion and solids handling, in addition to other water and sewer line expenditures.

And that’s not all. Page 39 shows as Drainage Capital Requested, $1.8 million from SPLOST 8 for “CP25.88 Lakeland Avenue Drainage Improvements Construction”. That’s the project City Engineer Ben O’Dowd is working on to deal with flooding and sewer spills on One Mile Branch upstream from Lakeland Avenue. Several weeks ago he already got the City Council to approve an engineering consulting study to flesh out the plan.

Page 39

This is by no means an exhaustive review of this proposed budget. I have merely picked a few items to discuss. Please read it for yourself, and consider going to the budget meeting. There’s no agenda posted, so I don’t know whether you will have an opportunity to speak. But Mayor and Council and staff will notice that you are there.

-jsq

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