Republic staff to hold water rates steady for 2026, propose bond and bridge line of credit to fund reduced 10‑year water CIP

City finance staff presented a multi‑part approach to manage water and wastewater finances over the next several years.

Bob Ford reviewed recent rate changes, noting the 2025 base water charge increased roughly 94% (from $8.66 to $16.76) and that, under the current fee structure, some customers could see large increases over 2023–2027. Ford said staff’s recommendation is to hold the 2025 water rates steady in 2026 (no increase), continue planned wastewater rate increases, and “flatten the slope” of future water increases while exploring alternative methodologies to distribute costs more equitably across user groups.

To match the revised approach, Ford said staff proposes reducing the 10‑year water capital improvement plan from about $70 million to $45 million and funding near‑term work with a tax‑exempt bond program spread over multiple tranches. To bridge cash‑flow until bonds are issued, staff proposed authorizing the chief financial officer to secure a dedicated special‑purpose LLC line of credit with Arvest Bank that would be repayable only from Water Fund revenues and not from the city’s general fund or full faith and credit. Ford described the proposed line as floating at prime minus 50 basis points with a 5% floor and a $500 origination fee; the LLC structure would prevent the line from constituting city indebtedness under Article 26(a) of the Missouri Constitution and require repayment from bond proceeds once issued.

Council asked whether draws on the line would require approval; Ford said draws for budgeted items could be made without returning to council, while non‑budgeted draws would require council approval. The council conducted first readings on related ordinances and heard staff recommend approval; no final vote on the line of credit authorization was recorded in the transcript.