Friday, September 21, 2001
Friday, September 21, 2001 |
|
WASA weighs options to finance planned $15 million expansion By JOHN
MUNFORD
As Peachtree City's Water and Sewerage Authority plans to spend more than $15 million on expansions to increase sewer capacity, it faces several options to finance those needs. One option, which could be cheaper in the long run, is through a low-interest loan from the Georgia Environmental Financing Authority. The other is through a routine revenue bond issue. From a convenience point of view, the bond funds would likely be easier to deal with since all the money would be received up front. The GEFA loan would come in installments as work progresses, said WASA General Manager Larry Turner. And there are other strings attached with the GEFA funds which could increase the overall cost of the project, Turner told the authority at a special workshop meeting Tuesday evening. Turner explained that using the GEFA funds would require the authority to abide by a number of federal regulations including wage limitations which could increase costs. The main advantage of the GEFA loan, however, is the possibility of saving a significant amount of money, as much as $100,000 a year according to estimates. But after hearing the shortcomings of the GEFA financing, authority members appeared to lean towards the more traditional bond financing approach. The authority has not made a final decision yet on the matter. But overtures have been made to city officials to determine if the city will guarantee repayment of the bond issue as it did on the authority's previous bond issue. Turner said he wanted to approach the City Council about that very issue before the new council takes office in January. The November election is guaranteed to provide the city a new mayor and could also include two new council members, depending on the outcome. Once the expansion is complete, the city's sewer capacity will increase by approximately 2 million gallons a day. Early estimates indicate residential sewer rates would need to increase by $4 or $5 a month to help pay for the project, Turner said.
|