Sewer-to-Water Internal Loan
Summary
The new fund loan policy sets rules for a short-term loan from the sewer fund to the water fund to keep cash flowing — the water fund is running short based on the rate study.
At a glance
- Total mentions
- 3
- Last 30 days
- 0
Last discussed May 18, 2026.
Impact analysis
A short-term inter-fund loan with interest terms set by the new policy; rate study identified the water fund's cash flow need.
Water utility customers, who get stable service while the fund's cash flow issues are managed.
Mentions & discussions (3)
City Council (Regular) - May 18, 2026
The Water Fund can borrow up to $4 million from the Sewer Fund like a line of credit, paying interest back to the Sewer Fund — cheaper than outside borrowing and only drawn when needed.
City Council (Regular) - May 4, 2026
A planned $4 million loan to shore up the water fund was pulled at the last minute. Staff realized a lump-sum draw would immediately accrue interest paid by water ratepayers, so it'll be restructured as a draw-only-what-you-need line of credit.
City Council (Regular) - Mar 2, 2026
The new fund loan policy sets rules for a short-term loan from the sewer fund to the water fund to keep cash flowing — the water fund is running short based on the rate study.
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