Lynn City reports near-completion of wastewater upgrades, outlines $275M CSO and treatment financing and budget impact

At a Lynn City Water Commission meeting on April 1, staff reported that the wastewater treatment plant upgrades are nearing completion and described the planned financing for that work and a wider combined-sewer-overflow (CSO) program.

Commission staff said the most recent contractor invoice — listed as invoice number 42 — was approximately $1.3 million for February and that the overall wastewater project is about 94% complete. “Everything seems to be moving, fairly well ahead,” staff said. The staff update said the commission has not yet started paying debt service through the Clean Water State Revolving Fund (SRF) program; once the contract is complete the SRF financing is expected to be split into two loans “in the neighborhood of $37,000,000 apiece.”

The staff presentation put the wastewater capital improvements at about $75,000,000 and the CSO program at about $200,000,000, for roughly $275,000,000 in total borrowing. Staff said those SRF loans carry about a 2% interest rate. “Over 30 years, a 2 percentage of that's gonna be over $400,000,000. Over 30 years, that's gonna be $13,000,000 of debt service that's gonna be added to the budget. Our budget is $36,000,000, so it's gonna add about 30, probably 36% on the budget to pay for these projects,” staff said.

On project timing, staff said most work at the treatment facility should finish within the month, with several pump-station projects (Washington, Hollis and Joel Circle) trailing slightly. For the CSO program, staff said a recent electrical hookup at one pump station was completed and that contractor and subcontractor remobilization and testing will require “about a 4 to 6 week” period before wet-well testing begins. One speaker gave an operational estimate of “probably 2 months” before the pump station work will be up and running and noted that one commercial-street drainage line would be run into the pump station first, followed by completion of the 72-inch separation pipe now about 75% complete.

Staff also discussed the payment history: the invoice labeled 42 reflects the ongoing monthly contractor payments; the commission has not yet begun SRF debt service and will start those loan payments once the financing is implemented. The presentation included a change-order and allowances list and completion dates for 43 smaller items tied to the contract.

Budget process and next steps: staff said the capital and rate proposals for fiscal 2026 will be packaged and appear in commission and mayoral packages in May, with votes slated for June. The commission’s stated next steps on the projects are completion of remaining punch-list items, pump-station testing and the SRF loan closings that will establish the 30-year repayment schedule.

No formal vote was taken on the financing during the meeting; the report was provided as an update.