Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the Utilities topic
No spam. Unsubscribe anytime.
Clinton Council OKs fee language tying $4.18 water charge to bond repayment, plans sunset on repayment portion
Summary
Clinton City Council approved updating the consolidated fee schedule so a $4.18 monthly water rate tied to repayment of a Board of Water Resources bond will automatically sunset when the bond is fully repaid; council and staff said the move is intended to protect residents' pocketbooks while ensuring bond repayment for the 1800 North waterline.
Clinton — The City Council on Feb. 10 approved changes to the consolidated fee schedule that formalize a $4.18 monthly water rate increase tied to repayment of a planned bond for the 1800 North waterline and include a sunset clause removing the rate portion used for repayment once the bond is paid in full.
Public Works Director Dave Williams told the council the full $4.18 per connection is the total needed to service the bond: $2.74 was implemented in mid‑2025 and the council considered an additional $1.44 to complete the $4.18 monthly amount. Williams said the city had exhausted other local resources to cover the project and needs the rate to ensure debt service.
The mayor’s office and staff inserted explicit language in the resolution that "the portion of the rate increase associated with the repayment of the bond shall sunset and be removed from the consolidated fee schedule upon full repayment and satisfaction of the bond obligation." The resolution document lists the applicable portions as $2.74 implemented in July/August 2025 and $1.44 implemented in March 2026, for a total sunset of $4.18.
Council member Adam Larson asked whether less favorable or more favorable bond terms would change the repayment profile; staff said final bond terms are expected to be set at a Board of Water Resources hearing on March 18 and that modest variance could be absorbed by account savings or would shorten or lengthen the sunset period rather than change the monthly figure materially.
City staff explained the rate calculation used an estimate of roughly 7,100 equivalent residential units (ERUs) to ensure conservative coverage of debt service and to allow for nonpayment and other adjustments. The council directed staff to confirm date references on the consolidated fee schedule before final publication.
The consolidated fee schedule update and the consent agenda were approved unanimously by roll call as part of the meeting’s consent items. City staff said any future council could alter or reinstate fees, but the current action documents the present council’s intent that the repayment portion be removed when the bond is retired.
What happens next: Dave Williams said staff will present final bond documents to the Board of Water Resources on March 18; if the bond is issued with terms similar to current assumptions, the city expects to collect the fee while the bond remains outstanding and to remove the repayment portion when the bond is paid.
