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Staff shifts model from bonds to SRF/USDA borrowing to delay full debt service
Summary
Staff told the board the model was updated to favor SRF or similar low-interest borrowing over bond financing, which pushes out the start of full debt service; full debt service across water projects is modeled to start around 2032 depending on phasing.
Staff told the board the district changed a major assumption in the model from using bond financing to using State Revolving Fund (SRF)-style or USDA borrowing. Staff said that change delays the onset of full debt-service payments, improving the near-term cash‑flow picture.
"So now that we've changed our assumptions on SRF to use SRF or Lithia, it pushes out those first debt service payments," a staff member said, explaining the timing benefit compared with bond financing. Staff said full debt service for the water projects in the model is expected around 2032, but that timing depends on how each phase is scheduled and the pace of borrowing.
Board members and staff discussed phasing and the likelihood of borrowing in stages rather than taking a single large bond. Staff said that will stagger debt-service impacts and that procurement and construction timing will shape when the district reaches maximum borrowing and full debt service.
