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WPCA proposes debt service fund structure to manage future loan payments
Summary
The WPCA discussed creating a debt service fund with separate principal and interest line items in the operating budget and having the Town Treasurer manage disbursements; members will circulate the proposed mechanics to bond counsel.
The Litchfield Water Pollution Control Authority reviewed a proposal to establish a formal debt service fund to manage annual principal and interest payments for any future loans tied to capital projects.
Chairman Chris Levesque outlined a structure in which annual debt-service payments would appear as separate line items in the WPCA operating budget and the Town Treasurer would manage disbursements on the WPCA’s behalf, consistent with existing shared-service arrangements (for example, payroll). Members noted the WPCA currently carries no outstanding debt and agreed that the use-case for counsel should address the debt-service accounting mechanics so bond counsel can confirm proper treatment.
The members agreed the document describing debt-service mechanics would be circulated to the BOS liaison for forwarding to town counsel and bond counsel as part of the broader capital-authorization package.
