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Council backs interim financing resolution for East County Advanced Water Purification JPA
Summary
Council approved a staff resolution to provide information for a nearly $400 million interim note issuance for the East County Advanced Water Purification JPA to bridge construction costs until State Revolving Fund reimbursements arrive; council noted long-term water-supply and cost-saving benefits and voted unanimously.
The city attorney summarized a request from the East County Advanced Water Purification Joint Powers Authority (JPA) for member action to support interim financing of the purification project. Staff said the JPA negotiated three-year interim notes of nearly $400 million to pay contractors during construction; the Clean Water State Revolving Fund (SRF) loan and grant disbursements will reimburse the JPA after expenditures occur, but interim funding is required now to keep the project moving.
The requested council action was limited to approving resolution language and providing member-specific disclosures to be included in preliminary and official offering statements for the note issuance. Staff emphasized that any member obligations would be limited to wastewater enterprise revenues, not the city's general fund.
Council members spoke in favor, stressing water-security benefits and long-term cost savings (one council member noted the AWP output will be indexed at a rate lower than other supply sources). A motion to adopt the proposed resolution passed unanimously.
Council members asked staff to continue outreach and to ensure clear public communication about financing mechanics and that repayment obligations flow from wastewater enterprise funds.
