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Rock Hill approves first reading to seek low-interest SRF loan for wastewater improvements
Summary
Council granted first-reading approval to pursue a State Revolving Fund (SRF) loan to finance wastewater system improvements, including a dewatering building and thermal dryer, with staff citing a favorable interest rate and a project estimate of roughly $28.6 million.
Rock Hill City Council on March 24 gave first-reading approval to an ordinance authorizing the city to borrow from the South Carolina Water Quality Revolving Fund Authority to finance improvements to the city's combined utility wastewater system.
City staff told council the project scope includes a new dewatering building, a thermal dryer and storage for the wastewater system. Jimmy Bagland said the staff applied for a State Revolving Fund (SRF) loan that carries an advantageous interest rate in the current market: “It’s a 2.4% interest rate, which is really good, considering the market these days,” Bagland said. Bagland also said the city’s current project estimate is $28,600,000 and that loan repayments are included in the city’s wastewater rate structure and financial plan.
The ordinance described on the agenda authorized borrowing not to exceed $29,000,000 plus capitalized interest under Title 48, Chapter 5 of the South Carolina Code, with staff recommending first-reading approval to proceed. Council moved and approved first reading without recorded opposition.
Council members noted the favorable interest terms during discussion; one council member summarized the rate detail as 2.1% for a 20-year note and 2.4% for a 30-year note as quoted in staff comments. The council did not amend the ordinance at first reading.
Next steps: staff will return to the council for subsequent readings and finalize loan documents and timeline if the SRF application and loan agreement proceed to completion.
