City staff presented a proposal on Jan. 14 to authorize up to $14 million in water- and sewer-system revenue bonds to pay for multiple capital improvements to Winchester's utility system.

Perry Eisenach, the item presenter, described the loan as a 20-year financing at an estimated 2.25% interest rate through a federally subsidized program that would require compliance with federal rules but yield a lower borrowing cost. "This particular loan would be for $14,000,000. It's a 20 year loan. The interest rate would be 2.25%." He told council the subsidy would save the city “well over a $1,000,000” in interest costs over the life of the loan.

The bond proceeds would fund three high-priority projects: replacement of two sanitary sewer pump stations required under a Department of Environmental Quality (DEQ) consent order; replacement of a sanitary sewer main at the east end of Woodstock Lane near the burn training center and the city's metering station; and lining about 12.5 miles of sewer main and rehabilitating about 280 manholes. City staff said lining—rather than full excavation replacement—would cost about $5.5 million versus an estimated $20 million to $25 million to dig and fully replace the same length of mains.

Staff said the work would be paid from water and sewer fees and would not use general-fund tax revenues; no immediate rate increase is required to proceed. The proposal was presented as a first reading; the council did not take an adoption vote on Jan. 14. Staff said a public hearing and further consideration will follow at a future meeting.

Councilors thanked staff for advancing the work and asked about construction impacts and longevity of lining; staff said lining is expected to last at least 50 years, possibly up to 100. Councilors also asked about public notice for traffic impacts during construction; staff said they will provide advance notice to residents on affected streets.