City Manager Chris Zapata reports that the longstanding City Council priority of transferring sewer collection services to the Sausalito Marin County Sanitary District (SMCSD) has resulted in $1,917,860 in interest cost savings to Sausalito residents and businesses. 

Based on the City Council and SMCSD’s unanimous approval of the Memorandum Of Understanding last month, the City paid off two long standing debts of the City sewer collection enterprise. The 2015 Sewer Revenue Bond and the State Clean Water Revolving Fund Loan were paid in full. A total of $5,352,721.08 was paid by the City to extinguish the two debts. Zapata states this payment will not stress City finances as the City has cash on hand to make this payment as well as pre-paying the California Public Employees Retirement System contribution and the annual Public Risk Innovation Solutions Management insurance payment. By August 1, SMCSD has agreed to provide an estimated $3,000,000 which will be paid back over time from Sausalito sewer ratepayers to reimburse the City for extinguishing this debt and allowing the legal transfer of the City sewer collection system. Moving this priority forward will create a single entity, SMCSD, responsible for sewer collection and sewer treatment services for Sausalito residents and businesses.

Paying the 2015 Sewer Bond twenty years early and Clean Water Revolving Loan Fund Loan eight years early means Sausalito ratepayers will see long term interest payments of $1,917,860 eliminated. These bond and loan pay-offs have resulted in $5,352,721.08 of debt removed from the City’s budget balance sheet in future years.