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Council hears preliminary estimate of up to $20 per household if Eureka accepts a loan
Summary
Staff told the council that if the city received a CIB loan for the full amount rather than a grant, residents might see a roughly $20-per-household rate increase; staff and council said final figures depend on loan amount and term.
During the CIB public hearing, Raelene, a city staff member, said the city would likely repay any loan from the water fund and that the repayment could require a rate increase. "I'm guessing it would probably be about $20, per household for the if it was, like, the full amount were alone," Raelene said, but she emphasized the estimate was provisional pending loan terms.
Council members and staff ran preliminary calculations and noted a short-term loan could reduce per-connection impacts (some estimates discussed ranged from around $7 to $10 per household depending on loan term and number of connections). One council member said pending state legislation makes it prudent to consider a rate increase when applying for funding. Council directed staff to report back with the final award and a repayment plan if a loan is accepted.
