January 27th Mayor and Council Meeting Notes
Wednesday, January 28th, 2026
The Dalton Mayor and Council met Tuesday evening, January 27th, in a special called meeting. The meeting agenda included discussion of a resolution authorizing Dalton Utilities (DU) to proceed with a proposal to issue revenue bonds to finance the construction of a new power plant. The agenda also included two appointments to City boards and an executive session to discuss personnel matters and potential litigation.
CLICK HERE TO WATCH VIDEO OF TUESDAY EVENING'S MEETING
Resolution 26-04 was approved by a unanimous 3-0 vote of the City Council following a discussion of the measure with Dalton Utilities CEO John Thomas (the Ward 2 City Council seat is currently vacant following a resignation and Mayor Annalee Sams typically votes only in the event of a tie). The resolution authorizes the city-owned utility company to move forward with a plan to issue debt to finance construction of a new electricity generation plant. The facility would be a 56.8 megawatt natural gas-powered plant built on property already owned by DU. The resolution calls for the debt to not exceed $130 million and also includes a clause that up to $30 of that budget can be prepaid once construction is completed if the project budget comes in less than that $130 million projection. The resolution is not a final authorization for the issuing of revenue bonds, and the bond ordinance would need to be amended before closing on the revenue bonds. The debt will be issued as tax-exempt, private placement bonds through Regions Bank. Closing is expected in either April or May of 2026.
Once constructed, the proposed power plant would allow DU to produce some of its own electricity and purchase less of its electricity from other entities. Thomas told the Council that Dalton Utilities estimates approximately $1.5 million in savings each year over the first ten years of the plant's lifetime, even while still repaying the debt from its construction. Thomas told the Council that nearly half of DU's power has come from the wholesale market, and adding to DU's own generation portfolio will allow the utility to have more long-term control over costs.
When asked by Councilmember Dennis Mock if the new plant was being considered because of data centers that could be built in the area, Thomas said no.
"We've been very transparent with our data center customers that we're not going to invest long-term in infrastructure like this, to serve them," Thomas said. "That's going to be an investment they're going to have to be a partner in... this (plant) is going to support capacity that we use to serve residential, commercial, and industrial customers."
Councilmember Tyree Goodlett pointed out that DU should let their customers know if any rate increases on their bills would be caused by the debt issue or the construction of the new plant. Thomas said that rates would not be increased by the project.
"When I was mentioning the savings (over the first ten years of the new plant's life) over the market price, this is this is an opportunity to mitigate potential increases in the future. Not to say that rates would go down, but it helps reduce the impact of what the market's doing, long-term," Thomas said.
To watch the discussion of Resolution 26-04 and the construction of the new plant, click here.
Thomas also told the Council that Dalton Utilities sent ten employees from DU's power lines crews to Holly Springs, Mississippi near Memphis to assist that community with storm recovery after a significant snow and ice knocked out power there.
The Council also voted to approve Rachel Dossche to fulfill the unexpired term of John Hutcheson on the Historic Preservation Commission. The Council voted 3-0 to approve the appointment. Mayor Sams also issued three mayoral appointments to City boards or commissions. Mayor Sams re-appointed herself and Councilmember Dennis Mock to a one-year term extension on the Land Bank Authority and re-appointed Councilmember Steve Farrow to a one-year term extension as the Council's liaison to the Historic Preservation Commission. To watch this portion of the meeting, click here.
The Mayor and Council then went into a closed executive session to discuss personnel matters and potential litigation. After returning from executive session, they took no action and adjourned the meeting. The next meeting of the Mayor and Council is scheduled for Monday, February 2nd, 2026 at 6:00 pm in the Raymond A. Elrod Council Chambers at City Hall.
Click "Play" in the window below to watch Tuesday evening's meeting
