The Flowery Branch City Council Thursday night will be asked to approve the issuance of $25 million in revenue bonds to help finance improvements to the water-sewer system.
City officials learned recently that the new estimate for the work is about $45 million. “Efforts are
ongoing to reduce costs from that number, but the time has come to look at other potential
funding sources,” according to city documents.
The city has already secured a low-interest loan from GEFA (the Georgia Environmental
Finance Authority) for $23.3 million of which approximately $20 million is still available. “Funding will
need to be secured for the additional $20-25 million prior to issuing a Notice to Proceed (NTP) on the
new plant which is currently scheduled for June,” the documents state, while noting that “GEFA has also changed their rules on extending loans to local governments. The current maximum amount of a loan is $12 million.”
After much review, city officials say they have determined issuing revenue bonds for the other $25 million is in the city’s best interest.