Waynesboro on Oct. 15 adopted a resolution declaring the citys official intent to reimburse certain expenditures from the proceeds of a borrowing related to wastewater treatment plant improvements, city staff said.

Finance and public-works staff member Mr. McCormick told the council the Virginia Department of Environmental Quality administers the Virginia Clean Water Revolving Loan Fund and that the city has been approved for a loan of $9,040,000, with up to $2,712,000 available in principal forgiveness. McCormick said the resolution preserves the citys ability to reimburse eligible engineering and project costs incurred before the loan closing from the loan proceeds if the council later decides to borrow.

McCormick noted the loan must be closed by Dec. 31, 2028, to qualify for the terms discussed. Council then voted to adopt the resolution of official intent.

Separately, staff presented a companion ordinance to appropriate $1,010,000 to the sewer fund to pay for engineering work on the wastewater treatment plant. McCormick said the appropriation would use local funds to pay for engineering now and that the council could later choose to reimburse those costs from loan proceeds under the adopted resolution. Council introduced the appropriation ordinance for final consideration at the Oct. 27 meeting.

Why it matters: The items are procedural steps that preserve the citys ability to use below-market loan funds and principal forgiveness for a significant infrastructure upgrade. Adopting the engineering appropriation will let the city secure design and pricing information needed to decide whether to borrow.

Whats next: Council adopted the resolution on Oct. 15 and set the engineering appropriation ordinance for final action Oct. 27.