//Valdosta Looks to Pay Down GEFA Debt

Valdosta Looks to Pay Down GEFA Debt

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The City of Valdosta is working to pay off $45 million borrowed it borrowed from the Georgia Environmental Finance Authority in the early 1990s, and city leaders warn they might have to raise property taxes if voters do not pass a sales tax referendum. The city plans to borrow another $30 million from GEFA  to fix sewage and flooding issues.

The first GEFA loan was was used to make improvements to the Mud Creek plant. The city currently pays on that debt with the utility fee revenue, but with the debt on its way to $75 million city leaders hope that voters will pass the SPLOST VII referendum in November. Without the revenue that tax would generate, property taxes may have to be raised to make loan payments.

In addition to the $30 million project to install a new force main pump to fix sewage issues, another $20 million will be needed to relocate the Withlacoochee Plant to higher ground. The city hopes the second project will be funded with SPLOST VII revenues instead of a third GEFA loan.

read more at WALB here.