SUBSTITUTE
Public Hearing: YES ☐ NO ☒ Department: Finance
SUBJECT:
Title
Commission District(s): All Districts
Adoption Of (1) The Attached Resolution Approving 10% Rate Increase No Earlier Than May 1 for the Year 2025, and Nine Additional Increases in the Amount of 10% Each , Which Shall Become Effective on Each January 1, Beginning January 1, 2026 Through and Including January 1, 2034, and (2) the Attached Series 2025 Bond Resolution Authorizing the Issuance by the County of not to Exceed $450 Million in Total Par Amount of Its Water and Sewerage Revenue Bonds, for the Purpose of Rehabilitating of the Scott Candler Water Treatment Facility and Other Crucial Water and Sewerage Projects, for the Department of Watershed Management (DWM) CIP.
Body
Information Contact: Dianne McNabb, Chief Financial Officer, & Robert Atkins, Treasurer
Phone Number: 404-304-4736 & 678-910-5638
PURPOSE:
To adopt (1) the attached Resolution approving 10% rate increase no earlier than May 1 for the year 2025, and nine additional increases in the amount of 10% each , which shall become effective on each January 1, beginning January 1, 2026 through and including January 1, 2034, and (2) the attached Series 2025 Bond Resolution authorizing the issuance by the County of not to exceed $450 million in total par amount of its water and sewerage revenue bonds, for the purpose of rehabilitating of the Scott Candler Water Treatment Facility and other crucial water and sewerage projects, for the Department of Watershed Management (DWM) CIP.
NEED/IMPACT:
The authorization of the rate increases and 2025 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 $18.5mm in 2025, steadily increasing, resulting in a $467mm increase in 2034 over 2024.
The true interest cost for the Series 2025 Bonds, based on current market conditions, is estimated to be approximately 4.3%, with the total interest to be paid of approximately $403.3 million. The costs of issuance and underwriter’s discount are estimated to total approximately $2.3 million. Actual interest cost will be based on the interest cost of the winning bid on the day of the competitive sale of the bonds. The interest cost will be provided to the Board on the day the Board is asked to approve the sale and issuance of the bonds.
RECOMMENDATION:
Recommended Action
Authorize the Chief Executive Officer and the Chief Financial Officer to execute all necessary documents in connection with this matter.