Fairburn just refuses to budge. But so does Union City and Palmetto. At stake is a resolution on the next move for South Fulton Municipal Water & Sewer Authority’s plan to eventually build a reservoir in the new city of Chattahoochee Hill Country to serve the increasing water needs of Palmetto, Union City and Fairburn.

The ongoing dilemma continued at a June 19 called meeting of the Fairburn council. The meeting was suggested at last week’s authority meeting as a possible means of finding a common ground to the impasse, that of having the Fairburn council change its vote to come in line with the Palmetto and Union City councils. At its core, Palmetto and Union City have voted to refinance the authority’s $41.7 million 2003 bond that would presumably pay for the entire project. The money saved by a lower interest rate could then be used as new money for the project, Palmetto and Union City representatives said. Fairburn’s idea is to refinance the bond and use the savings to help pay off the principle and interest payments coming due beginning this summer.

Any hopes Union City and Palmetto had that Fairburn would come around to their way of thinking were dashed at the June 19 meeting. The Fairburn council voted unanimously to hold fast on their previous position.

“I believe we are right. I think we’re right not to buy more property, but to pay off the debt. So we’re at a standoff,” said Mayor Betty Hannah in a clear reference to one of the issues surfaced by Fairburn at recent authority meeting, the expenditure of more than $9 million in bond funds, including property purchases, without obtaining any of the permits required to build the reservoir, water treatment plant and install water lines to the three cities.

Commenting on Fairburn’s decision to stick with its position, City Administrator Jim Williams offered a solution to the impasse, saying that Palmetto and Union City can go along with Fairburn’s position or potentially miss out on being able to refinance the bond. They say the new money from the refinancing option they want is what is needed to finish the project, but that option is built on assumption after assumption, Williams said.

“I can see the handwriting on the wall,” Councilman Mario Avery said. “They’ll say we cost them money but we’ve actually saved them money.”

Union City will begin this summer to repay $95,000 per month on the bond indebtedness, while Fairburn will repay $67,000 per month and Palmetto will repay $21,000. Applying the savings from refinancing those debts would reduce Fairburn’s monthly payment by approximately $10,000, Williams said.

The ongoing debate will likely be taken up at the authority’s July meeting.

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