Clearlake council signals support for 13‑year Measure V financing to accelerate road work

Clearlake councilmembers and staff agreed on direction to pursue debt financing to accelerate a multi‑year road‑maintenance program, asking staff to negotiate term sheets and bank solicitations while returning later with final financing documents.

Finance Director Kelsey Young told council the city is considering two basic strategies: continuing PAYGO at roughly $1.5 million per year that would spread $15–18 million in projects over 13–15 years, or debt financing that would complete the bulk of projects in 1–3 years and be repaid over 10–15 years using Measure V revenues. Young said a financing scenario could allow the city to complete concentrated neighborhood projects that would affect roughly 2,000–2,300 households and yield economies of scale.

NHA advisor Eric Scriven presented comparative scenarios (10‑ and 15‑year financings) and used illustrative interest rates (about 2.5–2.75%) and inflation assumptions (4%) to show that financing can yield more project funding today than PAYGO when inflation is considered. Scriven and staff walked through amortization examples under annual debt‑service caps of $1.0M, $1.25M and $1.5M.

Councilmembers asked detailed questions about design time, the number of miles that could be resurfaced or reconstructed, maintenance costs, utility coordination (Golden State Water, PG&E, AT&T) and impacts on outlying streets. Staff displayed a project map showing approximately 30 miles in blue (with roughly 10 miles suitable for chip seal) and said a $13–15 million package could cover about 20 miles depending on the mix of treatments.

After public support from residents and Measure V oversight committee members, council indicated consensus for a 13‑year financing term with annual debt service not to exceed $1.5 million. Council directed the city manager to negotiate term sheets and solicit bank bids; final financing documents will return to council for approval.