Board authorizes Fund 63 to front sewer project invoices pending bond proceeds (Resolution 2026‑6)

Staff briefed the board on planned sewer projects with long lead times that require early procurement and invoicing. To avoid delay, staff proposed using Fund 63 to front certain expenditures and later reimburse that fund from bond proceeds once borrowed funds are available.

The board debated the correct accounting treatment. One supervisor argued borrowing should be reserved for long‑term, durable assets, not for operational expenses; staff contended the proposed work—replacement of long stretches of aging pipe—is a capital repair and therefore appropriate to fund with borrowings intended for capital projects. Staff noted the approach aims to package larger, multi‑year replacements into a single project for efficiency rather than small annual repairs.

After discussion the board moved to adopt Resolution 2026‑6, authorizing Fund 63 to front specified sewer project expenditures pending receipt of borrowed monies. The motion passed by voice vote.

What happens next: staff will proceed with the purchase and invoicing plan described, front qualifying invoices from Fund 63 as necessary, and reimburse that fund when bond proceeds are received. Staff said they expect the borrowed monies to be received before long‑term increases in costs or project escalation, and that fund working capital is sufficient for the temporary fronting.

This item was presented as a formal resolution and the board recorded the motion and adopted Resolution 2026‑6; no further details on timing of bond issuance were provided at the meeting.