City staff briefed the committee on water system capacity and clarified that an interfund loan used for a recent pedestrian bridge capital payment will be repaid to the water fund.

Public works and finance staff explained Sherwood’s water service partnership at the Willamette River treatment plant provides substantial capacity after recent expansions. Staff said Sherwood’s share of treatment capacity is approximately 6.7 million gallons per day (MGD) and that overall intake and pipe capacity provide multi‑tens of millions of gallons per day of available capacity for future growth.

The committee asked whether the water fund was used to pay for bridge construction and whether that was a permanent diversion. David answered directly: “That water fund will be made 100% whole,” explaining the city made an interfund loan for the bridge project that will be repaid with urban renewal (TIF) revenue; the finance director noted the internal loan avoided bond and underwriting fees and will include interest paid back to the water fund. Staff emphasized the interfund loan is an internal financing mechanism and not an appropriation that permanently reduces water capital or operations funding.

Staff noted the water fund is subject to a 2% residential rate cap in the city charter for typical adjustments and that while current capacity is sufficient for forecasted growth, longer‑term upgrades to intake and treatment will be planned and funded as needed through master planning.