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. Continue reading →