Savannah plans a preliminary $142.4 million water-and-sewer bond sale
Savannah is preparing for an anticipated August 13, 2026, sale of about $142.445 million in water-and-sewer revenue bonds. The proposed Series 2026AB issue would be the first major transaction under a City Council authorization allowing up to $357.5 million in utility borrowing over three years.
The borrowing is intended for long-term water-and-sewer capital work and related financing costs. Under the city’s current preliminary plan, utility customers would help support the debt through higher rates. The final bond amount, pricing and terms have not been established because the sale has not yet occurred.
What the council authorized
On June 11, 2026, Savannah City Council approved a resolution authorizing up to $357.5 million in water-and-sewer revenue bonds over the three years ending in 2028. City records say the authorization is connected to an estimated $343.6 million in new water-and-sewer capital projects through December 31, 2028, along with the costs of issuing the bonds.
The $357.5 million is a borrowing ceiling, not a statement that Savannah has already issued that amount. The city says the exact amount and details of each transaction will be reported to council as bonds are sold.
What is planned for 2026
Preliminary bond parameters prepared for Savannah identify a proposed Series 2026AB issue with a total par amount of $142.445 million. The proposed new-money component has a par amount of $138.13 million, including a $137 million project-fund deposit. A separate $4.315 million component is proposed to refund part of an earlier issue.
The preliminary document lists August 26, 2026, as both the proposed dated date and delivery date. That is a separate transaction milestone from the City Council resolution’s anticipated August 13 sale date. The documents do not establish that either date is final.
The preliminary parameters also include estimated interest rates, maturity dates, issuance costs and underwriting expenses. Those figures may change when the bonds are priced and delivered.
Why utility bills are projected to rise
Savannah’s preliminary water-and-sewer forecast for 2026 through 2030 estimates a five-year capital program of $477.852 million. It separately projects five new borrowings totaling $442 million during that period. That five-year forecast is distinct from the separate three-year authorization of up to $357.5 million approved by council.
For the median inside-city customer, defined in the city memo as someone using about 15 CCF every two months, the projected 2026 increase in the combined water-and-sewer bill is $3.22 per month, or $38.64 for the year. The memo identifies that increase as 5.71%.
If the plan remains unchanged, the forecast projects monthly combined-bill increases of $3.75 in 2027, $4.72 in 2028, and $5.85 in both 2029 and 2030 for that median customer. Across the five-year planning period, the memo projects an average annual combined-bill increase of 7.18%.
What the money is intended to fund
The city’s forecast describes the capital plan as covering system improvements, upgrades and maintenance needed to keep the utility operating efficiently and in compliance with regulatory standards. It cites sewer-treatment capacity, stricter wastewater-discharge standards, operations and maintenance costs, debt service and the need to maintain adequate debt-service coverage.
The memo also anticipates greater reliance on purchased surface water as groundwater withdrawals face additional restrictions. It estimates that Savannah’s retail/groundwater system would need about 5,200 million gallons of purchased surface water in 2026 at a projected cost of $4.108 million. The memo says that could put upward pressure on system expenses.
The forecast is preliminary, may be revised during the budget process and does not analyze the Industrial and Domestic Surface Water Operation. Future council decisions, capital needs, operating expenses and bond-market conditions could change the borrowing plan and customer-rate projections.
What happens next
The city’s council resolution anticipates a Series 2026 sale on August 13, 2026. The preliminary financing document identifies August 26 as the proposed dated and delivery date. Savannah’s final bond size, pricing, interest costs, project proceeds and transaction details remain subject to the completed sale and subsequent city reporting.
Sources
Discover more from Interactive News
Subscribe to get the latest posts sent to your email.
