Staff reviewed a lease agreement with option to purchase for the Willow County Water District's property at 151 Laws Avenue, but the board took no approval action on the proposed terms. The offered interest rate of 4.15% is well below current commercial market rates (5–9%+ depending on loan type), and the lease included an escape clause that would allow the city to walk away—leaving the district with no board to liquidate the property. The board directed staff to go back to the city seeking revised terms—including a higher interest rate (roughly 5.5–6%) and an agreement structure that meets the district's rate-study goals; members debated whether it should be an outright sale versus a lease. Members noted the original five-year rate study that justified subsidizing ratepayers depended on receiving a lump-sum payment, not spread-out lease income. Without the expected revenue, next year's budget already shows an approximately $8,000 deficit.
Already have an account? Sign In
