Sumner council delegates authority to issue up to $14M in bonds for biosolids dryer replacement

Sumner City Council on Nov. 3 adopted Ordinance 2946 delegating authority to issue water and sewer revenue bonds, not to exceed $14,000,000 in aggregate principal, to fund the replacement of the dryer used to produce Class A biosolids at the joint Sumner–Bonney Lake wastewater facility.

Cassandra Raymond, chief financial officer, said the project’s total estimated cost is roughly $26,800,000; the interlocal agreement with Bonney Lake provides for the city of Bonney Lake to contribute 54% of the capital cost and Sumner’s estimated share is about $12,300,000. The ordinance authorizes bond terms with a maximum maturity of 20 years, a maximum coupon/true-interest cost of 6%, and delegates execution authority to the mayor, city administrator, deputy city administrator and CFO. Bond counsel and underwriter were identified as Foster Garvey and DA Davidson; financing is expected to close in early 2026.

Council members asked whether local retail investors could participate in the sale; Dave Traegasier of DA Davidson said a local retail component is possible and the firm can prioritize retail investors during the public sale, but institutional investors typically dominate issues of this size. Raymond said debt-service impacts are incorporated into the utility-rate model but that per-customer granular impacts would not be known until bonds are priced and sold; staff committed to provide at least a ballpark estimate after pricing.

Council voted to adopt the ordinance (roll call recorded; motion passed unanimously). The ordinance gives the authorized representatives the ability to finalize sale terms within the ordinance’s limits.