Deephaven staff recommends modest levy increases to ease 2028 bond impact

City staff presented the draft 2027 Capital Improvement Program and related property tax levy to the council, saying the document "maintained a net 0% levy, but discussion included the recommendation by Staff to increase the levy annually by approximately 2% through 2028 to provide funding for, and reduce the potential impact of, a potential 2028 Street Project that would require issuance of another municipal bond."

Staff explained the city's levy position in the context of the 2026A Series bond: the first payment on that issuance will occur in 2027 as an interest-only payment, and staff said funding for that payment is already reserved through the bonding process as collateralized interest. They noted the levy would effectively be reduced by about $520,000 in 2028 to accommodate the first full principal-and-interest payment. No formal action was taken; the matter was set for discussion only.