Revolving Lines of Credit for Capital Projects

At a glance

Based on speech-to-text of the meeting video; names and details may be misheard.

What: three revolving lines of credit with Wells Fargo to bridge short term financing of the FY27 capital improvement program: $60 million for the gas fund, $50 million for the general fund and $45 million for the sewer fund.
Where it stands: all three approved September 22, 2026.

The utility lines run three years and are backed by revenue; the general fund line runs one year and is backed by a lease back of three city properties totaling $50 million in insured value.
The finance director said idle cash has fallen, in part because reserves were used to balance budgets and because storm response may need cash, and that long term bonds (including a second tranche of Measure A bonds in November) would replace the short term lines.
Public speakers opposed the lines over gas system investment, fees on unused balances (about $441,000 in origination fees) and the choice of Wells Fargo.

2026-09-22 - City Council - Gas, general fund and sewer lines of credit approved.