Council authorizes up to $14 million in revenue bonds for biosolids dryer replacement

At its Nov. 3 meeting the Sumner City Council adopted Ordinance 2946 authorizing the issuance and sale of water and sewer revenue bonds not to exceed $14,000,000 to fund the biosolids modernization project, specifically replacement of a Class A biosolids dryer used at the joint Sumner‑Bonney Lake wastewater treatment facility.

Chief Financial Officer Cassandra Raymond summarized the project and financing terms. Raymond said the total project is estimated at roughly $26,800,000; under the interlocal agreement Bonney Lake will provide a capital contribution of 54% of the capital cost, leaving Sumner responsible for an estimated $12,300,000. Ordinance 2946, as adopted, permits a maximum aggregate par of $14,000,000, a final maturity not later than 20 years, and sets maximum parameters for coupon rate and true interest cost at 6%. The ordinance delegates authority to execute bond sale documents and settle final terms to named city officials (mayor, city administrator, deputy city administrator, CFO) and anticipates closing in early 2026.

Questions from council and public included whether local retail investors could participate in the bond sale and how the bond will affect monthly utility bills. Dave Traegasier of DA Davidson, the city’s underwriter, joined virtually and said retail participation can be accommodated through a public notice and priority in the sale process, but that for an issue above $10M most demand typically comes from institutional investors. Raymond said utility rate modeling incorporates anticipated debt service but that precise per‑customer dollar impacts cannot be calculated until bonds are priced and sold; she agreed staff could provide a ballpark estimate after pricing.

The ordinance passed unanimously on roll call.