An Effingham County Superior Court judge has approved Guyton City Council’s bond resolution for its water and sewer facilities.
Council members are seeking $9.565 million in bonds, and a bond validation hearing was held in Effingham County Superior Court on Aug. 24. Council members approved authorization for the bonds at their Aug. 4 meeting.
According to their filing for the bond resolution, the city is planning to pay off and redeem its 1997 bonds for its water and sewer infrastructure and to pre-pay loans with the Georgia Environmental Finance Authority and the U.S. Department of Agriculture.
Proceeds from the bonds also will go toward acquiring, constructing and equipping extensions, improvements and additions to the city’s water and sewer system. Revenue from bonds will satisfy debt service reserve requirements.
The bonds are to be paid off in full by March 1, 2041, and there is an outstanding principal of $669,000 on the 1997 bonds. The city signed a deed last year for $460,000 in loans from the USDA to finance acquisition of a lift station and a force main line. The city also has three loans with GEFA, totaling $2.577 million.
In the bond authorization request, the city determined that refunding the 1997 bonds and pre-paying in full the loans will enable the city to restructure debt of the system in order to finance the projects and upgrade and rehabilitate the water-sewer system.