County says Pocky Basin interconnect is critical; revenue bond options eyed

County staff described the Pocky Basin Regional Water System as a countywide priority and said financing will be essential to build the distribution and interconnection infrastructure the basin requires.

"This is a countywide project of significance both in terms of the commitment of county resources but also because of the critical importance that the system plays to the long‑term water security of the county utility system," Manager Greg Schaefer said. Schaefer told the board staff anticipates dedicating $2.2 million of capital outlay gross receipts tax revenue toward debt service for revenue bonds issued for the Basin Regional Water System.

Staff framed the interconnect to the Santa Fe basin as critical for two reasons: it allows demand outside the basin to shoulder some of the system’s operation and maintenance costs (lowering in‑basin costs for customers), and it provides backup supply to the Pocky Basin system to mitigate water‑quality and turnover concerns on long transmission lines. Staff cited a design parameter of roughly 1,000 acre‑feet per year delivery at a node near Bishop's Lodge/Tsuki Market, a corridor included in prior settlement agreements and federal approvals referenced by staff.

Staff said proceeds estimates will vary depending on whether the county can borrow at low state rates, secure grant subsidies, or issue on the open market. The board discussed options for leveraging mutual domestic projects and state funding, and commissioners urged a focused look at water projects as a group to maximize leverage and avoid “picking winners and losers.”

No final financing decision was made; staff will return with further cost estimates and potential financing strategies as part of the ICIP and five‑year capital plan work.