Everett council hears plan for $209 million in bonds to fund municipal and utility projects; approves two WPCF ordinances

Everett City Council members on March 5 heard a staff briefing on two proposed bond measures that together would allow the city to issue up to $28 million in limited tax general obligation (LTGO) bonds and up to $181 million in water and sewer revenue bonds to pay for municipal building work, a bridge replacement and multiple utility and riverfront projects.

The briefing, delivered by Heidi Boulantes, the city’s finance director, explained that the LTGO issue would be split into two series: one to reimburse costs for municipal building improvements and the Edgewater Bridge replacement, and a second sized to be repaid from local infrastructure financing tool (LIFT) revenues to fund Riverfront RDA projects including Eclipse Mill Park and the Lowell Riverfront Trail. The larger revenue bond would be repaid from the water and sewer utility fund and pay for projects such as the Port Gardner storage facility, West Marine View Drive combined conveyance improvements, the 30th Street combined sewer outflow control and the Water Pollution Control Facility (WPCF) headworks replacement.

“These have been planned funding sources for several years,” Heidi Boulantes said, describing the ordinances as the next step in financing projects already in the city’s capital plans.

Why it matters: The packages would let Everett begin or accelerate long-lived infrastructure work while spreading repayment over years to match who benefits. City staff said issuing bonds can be prudent when construction inflation and project timing make pay-as-you-go financing impractical.

Key details from the briefing - Maximum principal amounts: LTGO bonds not to exceed $28,000,000; water and sewer revenue bonds not to exceed $181,000,000. - LTGO structure: two series. Series A to be repaid from the city’s CIP 2 restricted REET quarter-percent revenue (Fund 162). Series B sized so annual debt service does not exceed the city’s LIFT receipt (see below). - LIFT/RDA: Everett’s Riverfront Revenue Development Area (RDA) has been receiving diverted state sales tax (the LIFT program) since July 1, 2017. Boulantes said the city has received the $500,000 annual maximum and that the series B LTGO was sized to keep annual debt service at or below that amount. - Bond terms and timing: LTGO bonds are sized for a 20-year term; revenue bonds are sized for up to 25 years. Staff said LTGO funds would likely be delivered in April and water/sewer bond proceeds around May–June, if the council adopts the ordinances. - Interest guidance: the ordinance language sets conservative “not to exceed” interest caps (5.25% for LTGO; 5.5% for revenue bonds). Staff estimated market pricing at the time of the meeting around 3.75% for the LTGO series and just over 4% for the revenue bonds. - Credit and capacity: Alice Austic, serving as bond counsel, explained legal debt capacity for general obligation debt is measured against assessed value and noted the city remains well below statutory limits. Staff said the city’s recent credit ratings would support issuance.

Council questions and clarifications Council members asked about debt capacity, the LIFT revenue mechanics, the choice to issue bonds rather than pay as you go, and how the proposed issues would affect future options such as stadium financing. Boulantes and Austic answered that the city remains well under legal debt capacity, that the LIFT diversion comes from the state portion of sales tax (up to $500,000 annually through 2042 under the existing RDA), and that issuing bonds can lock in current construction pricing and spread costs equitably over the period those who benefit will repay.

Council action taken at the meeting - The council approved the minutes for Jan. 26, 2025, and adopted consent items 1–7 by roll call. (See “Votes at a glance” below for vote details.) - The council held first readings of two bond ordinances (council bill 2502-17 for LTGO and council bill 2502-18 for water and sewer revenue bonds) and will consider second readings on March 12 and possible final adoption on March 19, 2025. - The council adopted two wastewater-related ordinances at third and final reading this evening: council bill 2502-12 (WPCF Electrical Switchgear Replacement Fund, program 047) and council bill 2502-13 (WPCF Headworks Replacement Fund, program 046). Both passed on roll-call votes. - The council was scheduled to consider a resolution declaring intent to issue indebtedness to be repaid with LIFT sales tax receipts (the LIFT resolution). After discussion, President Schwab postponed action on that resolution to the March 19 third/final reading so it will be considered alongside the bond ordinances.

Votes at a glance - Minutes (01/26/2025) — Approved. Vote (roll call): Vice President Sarlingo: yes; Council member Bader: yes; Council member Ryan: yes; Council member Tuohy: yes; President Schwab: yes. Outcome: approved. - Consent items 1–7 — Adopted. Vote (roll call): Vice President Sarlingo: yes; Council member Bader: yes; Council member Rhine: yes; Council member Voegely: yes; Council member Tuohy: yes; President Schwab: yes. Outcome: approved. - Council bill 2502-12 (WPCF Electrical Switchgear Replacement) — Adopted at third and final reading. Vote (roll call): Vice President Sarlingo: yes; Council member Bader: yes; Council member Ryan: yes; Council member Voegely: yes; Council member Tuohy: yes; President Schwab: yes. Outcome: approved. - Council bill 2502-13 (WPCF Headworks Replacement) — Adopted at third and final reading. Vote (roll call): Vice President Sarlingo: yes; Council member Bader: yes; Council member Ryan: yes; Council member Voegely: yes; Council member Tuohy: yes; President Schwab: yes. Outcome: approved. - Resolution declaring intent to issue indebtedness repaid with LIFT sales taxes (item 15) — Motion moved and seconded; the council postponed action to the March 19 meeting. Outcome: postponed.

Next steps Council will receive the second readings of the bond ordinances on March 12 and may consider final adoption on March 19. If the ordinances are adopted, staff expects LTGO proceeds in April and water/sewer revenue bond proceeds in late spring to early summer, timing dependent on market conditions and final sale dates.

No formal vote was taken on the bond ordinances at this meeting; final action is scheduled for later March readings.