Gwinnett to issue bonds for water upgrades

By Patrick Fox


The Atlanta Journal-Constitution

The Gwinnett County Commission approved a resolution Tuesday to issue up to $275 million in revenue bonds for the Water and Sewerage Authority.

The action, approved unanimously, should be the last bond issue for the Department of Water Resources for some time, said Mike Comer, deputy county administrator.

A portion of the proceeds, $150 million, will go toward major upgrades and improvements at the Crooked Creek and Yellow River water reclamation facilities and for a pipeline to run treated water to Lake Lanier.

“The Yellow River upgrade will allow us to close a few of our smaller plants that are much less efficient,” said Peter Frank, deputy director for business services at the Department of Water Resources.

The remaining $125 million in the new bonds will be used to restructure a 2004 bond offering that was issued with a variable rate. In a memorandum to commissioners, county officials said converting to a fixed-rate bond would provide budget certainty and better repayment terms.

“It’s kind of like a variable-rate mortgage,” Frank said. “You don’t know what rates are going to do, so it’s safer to firm up to a fixed rate going forward.”

In a related matter, the commission approved a 10-year water contract agreement with Walton County.

“We are basically there to help them during their peak demand,” Frank said. “We probably sell them $50,000 worth of water a year.”