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Council leans away from bonding; staff to model enterprise-transfer and rate mixes
Summary
After reviewing water-fund scenarios, council members signaled preference to avoid new bonds and asked staff to model combinations of internal enterprise transfers and modest rate increases to restore liquidity.
Council members indicated at the Oct. 21 work session that bonding for water projects is not their preferred first option.
A staff member summarized modeling showing that bond issuers focus on days-cash-on-hand (the city cited ~180 days). Council discussion favored avoiding interest-bearing loans where possible; Peter said an enterprise transfer from sewer and storm funds (examples in the packet included a $900,000 transfer) would be preferable to a loan that accrues interest. One council member said, "I don't want a bond right now," and the staff recommendation, given the numbers, was to take bonding off the table unless subsequent analysis suggests otherwise.
Council asked staff to run more permutations (varying transfer sizes and smaller rate increases) and return the household-dollar impact so members can choose a balanced path: part transfer, part smaller rate increase, and limited capital deferral if needed.
