The Calhoun City Council has approved $50 million in bond financing to begin major improvements at two city water treatment plants as part of ongoing efforts to reduce PFAS contamination in the local water supply.
During its regular meeting Monday night, November 9, the Council approved a master bond resolution and supplemental bond resolution that will provide funding for renovations at the Mauldin Road and Brittany Drive water treatment plants.
The improvements are part of the city’s long-term efforts to address PFAS, commonly referred to as “forever chemicals,” in the water system.
Davenport & Company, a financial advisory firm working with the city, solicited proposals from lending institutions to finance the approximately $50 million project. Six financial institutions submitted bids, with Truist Bank offering the recommended financing package.
City officials were presented with two financing options: a fully funded loan or a draw-down arrangement that would allow the city to borrow money as needed.
Davenport recommended the draw-down option through Truist, allowing the city to access up to $50 million over a 24-month period, with funds available to be drawn once per month.
The financing carries a variable interest rate tied to the Secured Overnight Financing Rate, or SOFR. The initial calculated rate was 3.76%, considerably lower than the 5% rate originally anticipated by city officials.
The agreement also includes an interest rate cap and allows the city to repay the loan early with just two days’ notice.
The bonds represent an initial step toward what could become a significantly larger investment in Calhoun’s water treatment infrastructure.
In 2025, city officials received findings from a 12,000-page engineering report prepared by Insite Engineering outlining recommendations for reducing PFAS contamination.
The report recommended replacing existing treatment systems at both facilities with advanced filtration technology and high-recovery reverse osmosis systems.
Estimated construction costs for the improvements were approximately $182.3 million at the Mauldin Road facility and $106 million at the Brittany Drive plant.
The engineering report also projected additional annual operating expenses of approximately $6.89 million at Mauldin Road and $5.1 million at Brittany Drive.
Combined, the two projects could require more than $288 million in initial capital investment.
The city’s efforts to address PFAS contamination have also been accompanied by legal challenges.
In early 2024, a lawsuit involving Moss Land Company LLC and the Revocable Living Trust of William Darryl Edwards raised allegations concerning PFAS contamination on properties in Gordon County.
The lawsuit alleged that sewage sludge from Calhoun’s wastewater treatment operations contained PFAS and had been applied to privately owned property over several years.
According to the filing, nearly 28,000 tons of sludge had been applied to property owned by Moss Land Company. The plaintiffs alleged they were unaware of the PFAS contamination until receiving notice of potential legal action in November 2023.
The allegations are part of the broader concerns surrounding PFAS contamination and its impact on local water resources.
Monday night’s bond resolutions were approved by Councilmembers Ed Moyer, Al Edwards and Bruce Potts. Councilwoman Jackie Palazzolo was absent.
The $50 million financing package will allow Calhoun to begin moving forward with improvements at the two water treatment facilities as the city works toward addressing PFAS contamination in its water supply.