2006 Water Comprehensive Plan - City of Bellevue

during periods of high expenditures. The revised financial policy relies on this R&R Account, inconjunction with rates, to fund capital replacement and does not plan to use debt except toprovide rate stability in the event of significantly changed circumstances, such as disasters orexternal mandates.All connection charge revenues, and other one-time sources of funds, including ending fundbalances higher than budgeted, will be deposited to the R&R Account. Table 12-3, shows theprojected balances in the account from 2006-2013.FUNDING FOR WATER CONSERVATION PROGRAMTable 12-2 includes recurring costs of approximately $220,000 per year in 2006 dollars to fundthe water conservation program. Specific or additional initiatives will be considered in eachyear's budget preparation. The program will be funded at a sufficient level to meet state andcontractual requirements, plus approved local initiatives, as identified in Chapter 5.CURRENT DEBT STATUSAs listed below, the Utility currently has one outstanding revenue bond issue, to refinance otherbond issues previously sold for capital project needs, and one Public Works Trust Fund Loan.Water Utility Debt Outstanding as of December 31, 2005Bond SeriesIssueDateOriginalIssueAmountBondsOutstanding12-31-05FinalMaturityDate22004 Water Refunding Bonds1994 Public Works Trust Fund Loan200419946,825,000559,8005,490,000265,500Oct. 1, 2010July 1, 2014CREDIT WORTHINESSWhile they operate independently, the City's water, sewer, and storm and surface water utilitiesofficially merged in 1980 into one combined "Waterworks Utility" for financial reportingpurposes. This action has allowed the individual utilities to issue bonds at more favorableinterest rates by presenting their combined financial resources and revenue generating capabilityas related debt security.12-5