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Littlefield council hears financing options for water projects and discusses a small base-rate increase
Summary
Financial adviser presented two financing scenarios for utility projects; council favored a seven-year note and discussed raising the city water base rate from $35 to $36 to support bond debt and operations. No vote taken; staff to return with formal recommendation.
Mayor Eric Turpen and City Manager Ray Resendez led a discussion after Stifel Public Finance advisor Brad Angst outlined two financing options for Littlefield's water projects: a seven-year note with higher annual payments but lower total interest and a 15-year repayment with lower annual payments but higher total interest. Angst also reviewed the city's current debt portfolio and recent tax-rate history.
Turpen and Resendez said the council signaled a preference for the seven-year note to reduce total interest costs while accepting higher annual payments. Turpen said the council must consider a modest water-rate adjustment to cover bond debt and operational costs; the proposal discussed would raise the residential/commercial base rate from $35 to $36 and impose greater increases for out-of-town users. No motion or formal vote was taken; staff presented the options for future action and the council requested follow-up with finalized financing terms and a formal rate ordinance if pursued.
