The Mountain City Council on Nov. 25 approved a package of financing and rate items after staff and consultants outlined a multi‑year debt and utility plan.

Council action: The council adopted Resolution 25‑89, approving a street reconstruction and overlay plan and authorizing the issuance of general obligation street reconstruction bonds; it also approved Resolution 25‑90 (property tax abatements related to Phase 2 financing) and Resolution 25‑91, providing for the issuance and sale of roughly $7.24 million in general obligation bonds series 2026A. All three measures passed by voice vote during the meeting.

Why it matters: City finance staff and consultants said the debt issuance is intended to fund a capital improvement program (CIP) of street and utility projects and that, if the council follows the recommended plan, debt issuance would be concentrated through 2029 with the city returning to lower issuance afterward.

Key presentation: Noah (the city’s finance director) told the council that under the proposed debt management plan the city will issue debt through 2029 to fund CIP projects but, if the plan is followed, "by 2029, if we stay on our plan… we will not have to issue debt." He urged clear communication to residents about timing and impacts.

Utility rates and fees: Kyle Sawyer, director of fiscal consulting at Ehlers, presented Phase 1 of an updated utility rate study and financial management plan focused on water and sewer for 2026. He emphasized increased capital costs (meter replacements, force mains) and Met Council sewer charge pressures; he said the Met Council charge produced a 16.6% increase affecting sewer costs in 2026. Under Phase 1 assumptions, Kyle said typical residential impacts would be about a $28 per quarter increase for a low‑volume user, $37 for a medium user and $49 for a high‑volume user (these figures cover billed utilities including water, sewer, storm, recycling and street lighting as presented).

Fee schedule: After the presentation the council voted to adopt Resolution 25‑92, approving the 2026 fee schedule (the utility changes were the most notable items in the schedule) by voice vote.

Budget and communication notes: Council members stressed the need for clear public materials explaining the multi‑year plan, debt timing and the rationale for shifting certain franchise fee allocations into the water and sewer funds. Staff said the franchise fee reallocation and bond timing were designed to stabilize the water fund, which has run negative cash in recent years.

What’s next: Staff will publish materials and timeline visuals for residents; Phase 2 of the rate study will present funding scenarios for a potential water treatment plant (approximate ballpark scenarios discussed were $15 million and $30 million), and the council will revisit the plan once state bonding and additional analysis are known.