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Dell Rapids council approves resolutions to apply for state water and sewer loans for Orleans Avenue and westward expansion
Summary
The Dell Rapids City Council held four public hearings and approved four resolutions authorizing applications for state drinking water and clean water loans tied to the Orleans Avenue project and a westward utilities expansion; city staff said financing details will be known in March and the projects would be repaid through a project surcharge.
The Dell Rapids City Council on Monday approved four resolutions authorizing the city to apply for state loan programs to fund drinking water and clean water components of two capital projects, including work on Orleans Avenue and a westward utilities expansion.
City staff said the applications were submitted to the Department of Agriculture and Natural Resources and are considered incomplete until the council holds the required public hearings and adopts the resolutions. Sophie Johnson of CCOG explained the city submitted four applications to meet the agency—s Jan. 1, 2025 deadline, with separate drinking-water and clean-water components for each project.
The council heard details for the Orleans Avenue project, which Johnson said has a total estimated cost of approximately $4,994,300. For the clean-water portion of that project the city requested funding of up to $3,836,300, which Johnson said includes nonpoint-source funding. She told the council the state clean-water revolving fund loan would carry an interest rate of about 3.75% for 30 years, or about 3% for 30 years if the Board of Water and Natural Resources grants nonpoint-source pollution program funding.
Johnson said the Department of Agriculture and Natural Resources will announce the financing package in March and that award packages can include any combination of loans, grants or principal forgiveness. She said the city expects to repay any loan amounts through a project surcharge; if the requested loan amount is funded at the stated percentage, the projected utility-rate impact per user for the Orleans Avenue clean-water portion is approximately $12.37. Johnson added that any grant funding awarded would reduce that surcharge.
After the presentations the council moved, seconded and approved each of the four resolutions by roll call. Council members did not amend the loan applications at the meeting. City staff and the council indicated they expect to receive formal financing details in March, at which time the council will have additional information about loan terms and any principal forgiveness included in the final package.
The council—s action authorizes staff to complete the applications and accept whatever mix of loan and grant funds the state program offers; the meeting record does not show any final loan awards or changes to the projects themselves. Staff said further council action will follow when the Board of Water and Natural Resources announces the financing packages in March.
The public hearings and resolutions fulfilled the state program—s procedural requirement that loan applicants hold a local public hearing and adopt formal resolutions before an application is considered complete.
