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Provo holds public hearing on $4.5 million state loan for wastewater reclamation project
Summary
Provo City held a required public hearing July 22 on issuing $4.5 million in wastewater revenue bonds as part of a state loan to fund the next phase of its reclamation plant; staff said the loan complements a $2.5 million grant and previously issued revenue bonds.
Provo City opened a public hearing July 22 on issuing $4.5 million in wastewater revenue bonds as part of a State Water Quality Board loan to fund the next phase of the city’s reclamation plant.
City Public Works Administration Division Director Jimmy McKnight told the council the funding package for the plant includes a $2.5 million grant and a $4.5 million, 20-year state loan at 0.75% interest; the $4.5 million component requires an additional public hearing and notice to sewer customers before the state will close the loan. “The first, listed here is a $7,000,000 award from the State Water Quality Board, which consists of 2,500,000.0, grant and 4,500,000.0 of a 20 year loan at point 75% interest. The purpose of today's public hearing is regarding that $4,500,000 loan,” McKnight said.
McKnight also told the council the city previously authorized $37 million of revenue bonds in November 2024 and issued $29 million of revenue bonds privately in January at 3.75% interest; the $4.5 million loan is the remaining financing component the state requires the city to confirm through notice and a separate hearing. McKnight said the city mailed notices to sewer customers: “we have sent out, over 21,000 public notices to each sewer customer in Provo.”
City staff including water resources and reclamation personnel and the city’s bond counsel were present and available to answer council questions; no formal council action on the loan was taken at the hearing. The hearing record will be used to complete the city’s application and close with the state loan program.
No members of the public spoke during the hearing portion for this item, and McKnight indicated the city will proceed to finalize the loan application after the hearing record is complete.
