As Peachtree

City's Water and Sewerage Authority plans to spend more than $15 million

on expansions to increase sewer capacity, it faces several options to

finance those needs.

One option,

which could be cheaper in the long run, is through a low-interest loan

from the Georgia Environmental Financing Authority. The other is through

a routine revenue bond issue.

From a convenience

point of view, the bond funds would likely be easier to deal with since

all the money would be received up front. The GEFA loan would come in

installments as work progresses, said WASA General Manager Larry Turner.

And there are

other strings attached with the GEFA funds which could increase the overall

cost of the project, Turner told the authority at a special workshop meeting

Tuesday evening. Turner explained that using the GEFA funds would require

the authority to abide by a number of federal regulations including wage

limitations which could increase costs.

The main advantage

of the GEFA loan, however, is the possibility of saving a significant

amount of money, as much as $100,000 a year according to estimates. But

after hearing the shortcomings of the GEFA financing, authority members

appeared to lean towards the more traditional bond financing approach.

The authority

has not made a final decision yet on the matter. But overtures have been

made to city officials to determine if the city will guarantee repayment

of the bond issue as it did on the authority's previous bond issue.

Turner said

he wanted to approach the City Council about that very issue before the

new council takes office in January.

The November

election is guaranteed to provide the city a new mayor and could also

include two new council members, depending on the outcome.

Once the expansion

is complete, the city's sewer capacity will increase by approximately

2 million gallons a day. Early estimates indicate residential sewer rates

would need to increase by $4 or $5 a month to help pay for the project,

Turner said.

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