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Council authorizes bond counsel for wastewater project; staff flags $12 million borrowing need
Summary
Monte Vista authorized a letter of engagement with bond counsel Coutac Rock for its wastewater treatment facility and learned a rate study indicates an additional $12 million of borrowing will be needed; staff and council scheduled follow-up briefings on rates and repayment impacts.
Council voted on May 7 to authorize City Manager GG Dennis to sign an engagement letter with the law firm Coutac Rock to serve as bond counsel for the city’s planned wastewater treatment facility.
The motion to approve the letter of engagement was moved, seconded and carried. Council discussion noted that bond counsel will assist with financing options, USDA rural development and similar processes commonly used for municipal borrowing.
Separately, staff briefed council on a rate study showing the city will need to borrow an additional $12 million to complete the wastewater project and outlined that utility rates will need to rise to cover debt service. Staff said final rate recommendations and a detailed repayment plan will be presented in a follow-up meeting; council members requested a briefing to get up to speed on assumptions and timelines.
What’s next: engagement letter signed by the city manager and further council workshops on the rate study, repayment scenarios and customer impacts.
