File #: 2024-1326    Version: 1 Name:
Type: Resolution Status: Action
File created: 10/15/2024 In control: Board of Commissioners
On agenda: 12/17/2024 Final action:
Title: Commission District(s): All Districts Adoption of the Attached Resolution Approving 6% Rate Increases on January 1 for the Years 2025, 2026 and 2027 and a 2024 Bond Issuance, Not to Exceed $225 Million in Total Par Amount, for the Purpose of Rehabilitating of the Scott Candler Water Treatment Facility and Other Crucial Projects, for the Department of Watershed Management (DWM) CIP. The Bond Issue Will Be Sold Through a Competitive Bid Process Managed by PFM, the County's Financial Advisor.

                                    

Public Hearing:  YES      NO                                                   Department: Finance                                     

 

SUBJECT:

Title

Commission District(s): All Districts

Adoption of the Attached Resolution Approving 6% Rate Increases on January 1 for the Years 2025, 2026 and 2027 and a 2024 Bond Issuance, Not to Exceed $225 Million in Total Par Amount, for the Purpose of Rehabilitating of the Scott Candler Water Treatment Facility and Other Crucial Projects, for the Department of Watershed Management (DWM) CIP.

 

The Bond Issue Will Be Sold Through a Competitive Bid Process Managed by PFM, the County’s Financial

Advisor.

Body

 

Information Contact: Dianne McNabb, Chief Financial Officer, & Robert Atkins, Treasurer

Phone Number: 404-304-4736 & 678-910-5638

 

PURPOSE:

To adopt the attached Resolution approving 6% rate increases on January 1 for the years 2025, 2026 and 2027
and a 2024 bond issuance, not to exceed $225 million in total par amount, which will prioritize the
rehabilitation of the Scott Candler Water Treatment Facility and other crucial projects, for the Department of
Watershed Management (DWM) Capital Improvement Plan (CIP).

 

NEED/IMPACT:

The authorization of the rate increases and 2024 bond issue will enable the County to fund (paygo) and

finance the cost of the acquisition, construction and equipping of certain improvements to the County’s water

and sewerage system, the priorities being 1) the rehabilitation of the Scott Candler Water Treatment Facility

and 2) other crucial projects, including continuing to fulfill consent decree obligations.

 

FISCAL IMPACT:

The rate increase is estimated to increase revenues by $17.6mm, $18.7mm, and $19.8mm in 2025, 2026, and

2027, respectively. The 2023 average residential bill of $70.00 will increase to $74.20 in 2025, $78.65 in 2026 and $83.37 in 2027, respectively.

 

The true interest cost for the Series 2024 Bonds, based on current market conditions, is estimated to be

approximately 4.25%, with the total interest to be paid of approximately $196.0 million. The costs of issuance

and underwriter’s discount are estimated to total approximately $1.7 million.

 

RECOMMENDATION:

Recommended Action

Authorize the Chief Executive Officer and the Chief Financial Officer to execute all necessary documents in connection with this matter.