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Lyons clerk reports year-to-date losses and outlines USDA loan conditions for water project
Summary
City Clerk Whitney Anderson reported November financial statements showing month-to-date and year-to-date net losses in General and Utility funds and described USDA loan requirements for debt-service and short-lived asset reserves tied to the water treatment plant project.
City Clerk Whitney Anderson presented the November treasurer and income statements to the Lyons City Council on Dec. 10, reporting month-to-date and year-to-date net losses in both the General and Utility funds.
Anderson outlined the Letter of Conditions for a USDA loan associated with the Water Treatment Plant Project, which requires an annual debt-service reserve contribution of $3,276 until a total of $32,670 is reached and an annual $44,000 contribution to a Short-Lived Asset (SLA) reserve for items such as tank painting, meters and filter equipment. Anderson reported transfers from the Utility Money Market account in 2024 to meet these reserve needs and said the city will pursue an ordinance to formalize reserves for Utility MM, SLA and an Emergency Reserve Account.
The clerk also noted operating metrics: the General Fund and Utility Fund posted significant month-to-date and year-to-date net losses; debt service showed a month-to-date net gain but a substantial year-to-date net loss. Council approved a $3,500 purchase of a 20-inch floor scrubber for city facilities.
Why it matters: the USDA loan conditions add recurring reserve obligations to the utility budget and will affect long-term rate and reserve planning; the recorded operating losses underline the council’s need to review revenue and expense assumptions ahead of project implementation.
