Council reviews $11.18 million CIP borrowing and wastewater financing; staff detail SRF, rates and debt capacity

Clinton City Council members spent the opening portion of a Feb. 13 budget workshop focused on the capital improvement plan and the debt implications of an $11,181,000 borrowing the city is considering for fiscal 2026.

The discussion centered on how a roughly $11.18 million issuance would affect the city’s general obligation debt totals, the tax levy and legal debt capacity; how the State Revolving Fund (SRF) loans and a proposed conversion of one SRF note to a GO bond would change sewer fund ratios; and how planned sewer projects and an industrial-rate arrangement with a large customer would pay for a new biogas project.

Why it matters: the city’s consultant and staff said the borrowing is large enough to change debt ratios and the pre-levy amount the city must include in the proposed levy. The financing plan also ties closely to wastewater rate decisions and a separate SRF note the council would convert to a GO bond to preserve the city’s SRF borrowing capacity for a biogas project tied to an industrial customer (referred to in the meeting as “ADM”). Those rate and SRF decisions affect both ratepayers (sewer rates) and property taxpayers (debt-service levy).

Details of the CIP and debt book

Staff member Matt (finance staff) and Anita (finance staff) reviewed PFM’s modeling showing a CIP borrowing figure that prints on the agenda at about $11,000,181 (PFM’s package…