RIO DELL — The City Council unanimously approved a resolution authorizing the city to execute a financing agreement with the State Water Resources Control Board to finance additional water system improvements.

City staff and consultants told the council the city was awarded a $12.9 million state grant through the State Water Resources Control Board for a water capital improvement project that is already under construction. Bids required some project items be peeled back to meet the original budget; staff presented a financing option to complete the previously envisioned scope.

Council approved Resolution No. 1651-2025 authorizing execution of the financing agreement. Staff said the total debt service associated with the financing is $3,476,083.01. The staff presentation described the loan principal amount to be approximately $2,345,000 (rounded) with an interest rate of about 1.9 percent amortized over roughly 40–42 years; staff said the City’s remaining debt capacity and the retirement of earlier debt in 2028–29 make the financing manageable under current rates.

Why it matters: The financing would allow the city to finish additional pipeline work, hydrants, meters and service connections on several streets and thereby complete the project without waiting for another grant round that staff said the state is unlikely to provide.

Project scope and streets named
- Additional work described for North Court, Ravey, Painter, Walker, Berkeley, Davis and Center streets: added hydrants, meters, meter boxes, valves, piping and service-line connections to homes.

Council action
- Motion and vote: Council approved the resolution to execute the financing agreement with the State Water Resources Control Board; motion seconded and passed 4–0.

Budgetary notes and alternatives
- Staff said the state grant was the primary funding source and additional grant funds are not available; the financing offers a low interest option (1.9 percent) compared with typical market rates. Council members discussed the desirability of completing the entire project rather than leaving work unfinished and noted the long repayment term.

Next steps
- Staff will execute the financing agreement and continue construction to integrate the additional scope; council will receive future updates on project timelines and debt-service impacts.