SUBSTITUTE
Public Hearing: YES ☐ NO ☒ Department: Public Works - Roads & Drainage
SUBJECT:
Title
Commission District(s): All Districts
GEFA Stormwater Loan
Body
Information Contact: Peggy V. Allen
Phone Number: (404) 294-2878
PURPOSE:
To accept the Georgia Environmental Finance Authority (GEFA) Loan No. CW-2023-031 in the amount of $10,000,000 and to authorize the Chief Executive Officer to execute all necessary documents.
NEED/IMPACT:
The County submitted a GEFA loan application to fund several stormwater drainage system repair and improvement projects throughout DeKalb County. GEFA approved a loan in the amount of $10,000,000.
The total construction cost for the identified stormwater drainage system projects is estimated at $34.8 million. It is recommended to borrow $10 million from GEFA to help defray the cost of the projects.
The loan is part of a long- term strategy to maximize the benefits of leverage with GEFA as well as other Federal funding sources. The benefits include, but are not limited to, lower than market interest rates and increased structure flexibility. The Stormwater drainage system projects included in the loan are necessary due either to high priority ranking due to the severity of the defect or the need to mitigate the impact on other stormwater structures and the community. The stormwater drainage projects included in the loan are scheduled for repair based on previous assessments and prioritization.
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FISCAL IMPACT:
GEFA’s one-time fee is approximately $150,000. Additional Cost of Issuance (COI) fees are approximately $20,000. A net interest cost (NIC) of 2.90% vs the estimated market 3.95% approximates $2.9 million in savings. The loan is 20 years
RECOMMENDATION:
Recommended Action
Accept the Georgia Environmental Finance Authority (GEFA) Loan No. CW-2023-031 in the principal amount of $10,000,000, bearing interest at 2.90% per annum and amortizing principal over a 20-year period (beginning not later than April 1, 2028) and authorize the Chief Executive Officer to execute all necessary loan documents.