Clearlake council asks staff for detailed road‑financing scenarios after advisers outline $8.6M–$18.1M options

Clearlake — The City Council on March 3 asked staff to develop detailed financing scenarios and project-specific cost estimates after municipal advisers showed the city could raise roughly $8.6 million to $18.1 million by borrowing against Measure B sales‑tax revenues.

The discussion grew out of a presentation by Leslie Bloom of NHA Advisors, who said Measure B — a 1¢ sales tax that generates about $2.5 million annually — could support either 10‑ or 15‑year structures and a range of annual debt‑service payments. "We ran six potential financing examples," Bloom said, and estimated proceeds ranging from about $8.6 million for a 10‑year option to about $18.1 million for a 15‑year example with higher annual payments.

Why it matters: Council members said rising construction costs and material inflation mean larger projects could cost more the longer the city waits; advocates for borrowing argued capturing lower rates and completing large projects quickly could reduce future inflationary cost escalation. Opponents cautioned that interest expense and risk to reserves must be weighed.

Council debate centered on two tradeoffs: scale versus control. Some members favored a targeted approach — smaller, project‑specific loans tied to clearly defined, shovel‑ready work. "If this item had come to me and said, we have an opportunity to save x number of dollars… I could be in favor of that," Vice Mayor Purdock said, urging caution and fidelity to the pay‑as‑you‑go promise made when Measure V was proposed. Other members and outside advisors noted that grouping projects can reduce unit costs and that addressing badly deteriorated roads now can lower long‑term maintenance costs.

Technical staff and a pavement consultant warned that not all streets are suited to lower‑cost double chip‑seal work; sections with drainage or base issues will require more expensive removal‑and‑replace work. The city’s staff estimate of all candidate projects on the map totaled about $30 million, and advisers said the $18 million high‑end example would still not cover every item shown.

The council did not vote to issue debt. Instead members asked staff to return with the following: (1) proposed project packages at different financing levels, (2) a comparative cost‑benefit analysis showing projected maintenance savings versus interest expense, and (3) firm financing quotes, including the option of a bank line of credit or bank‑placed loan. "We need to show that the savings is going to be there," one councilmember said.

Next steps: Staff will work with NHA Advisors and city engineers to model several financing packages and specific streets lists and present the results for council action at a later meeting.