Snoqualmie City Council approves $6.8M loan for reclaimed water system improvements

The Snoqualmie Parks and Public Works Committee convened on February 4, 2025, to discuss significant developments regarding the city's reclaimed water system improvements. The meeting, which began with procedural formalities, quickly transitioned to the approval of a resolution to accept a low-interest loan from the Department of Ecology.

Andrew Vining, the city engineer, presented details of the loan, amounting to $6,866,000 with a 30-year term at a competitive interest rate of 1.6%. This funding is earmarked for constructing a new reclaimed water reservoir, a project that is expected to commence in the summer and aims for completion by June 30, 2026. Vining emphasized that the loan's terms are favorable compared to market rates, which will help maintain lower utility rates during the construction phase.

Committee members raised concerns about the financial implications of the loan, particularly regarding its long-term budget impact. One member highlighted the need for clarity on the annual budget commitments associated with the loan, suggesting that the summary statement should include specific details such as the loan amount, interest rate, and repayment terms. Vining clarified that the city would not incur interest payments until funds are drawn for specific project expenses, which would be done in stages to manage cash flow effectively.

The discussion also touched on the necessity of adhering to best practices in financial reporting and reimbursement claims related to the loan. Members noted that while the loan covers a portion of the construction costs, the city would need to secure additional funding to cover the total expenses. The committee acknowledged the importance of thorough documentation and compliance with federal audit requirements, especially given the anticipated expenditure exceeding $750,000.

In conclusion, the meeting underscored the city's proactive approach to securing funding for essential infrastructure improvements while navigating the complexities of financial management and compliance. The committee's discussions set the stage for advancing the reclaimed water project, which is a priority for the city in the coming years. Further steps will involve finalizing project contracts and ensuring that all financial practices align with regulatory standards.