Clean Water Trust awards loan forgiveness for Duck Island sewer upgrade; council seeks odor-mitigation update

Councilors asked for an update on odor mitigation at the Duck Island Wastewater Treatment Facility and heard that the city has received loan forgiveness from the Massachusetts Clean Water Trust for the plant upgrade. At the July 22 meeting, Councilor Belanger requested an update because constituents continue to report odors downstream; the council moved an informational item about sewer loan forgiveness up on the agenda so officials could discuss it. Mr. Baldwin, the city’s CFO, told the council the Clean Water Trust program helps municipalities finance major clean- and drinking-water projects at low interest (about 2 percent) and that the trust had offered loan forgiveness for the Duck Island upgrade. He said the forgiveness award is about $6,000,000 — roughly 24 percent of the project — and that the reduction in principal will translate to an estimated $300,000 per year in debt-service savings for the sewer enterprise fund. “The one of the major benefits … is that sometimes when you're in the program, they will offer loan forgiveness, which essentially takes a chunk of the project costs, and then the municipality does not have to pay that back,” Baldwin said. He added that the award is welcome because the utility debt is significant: the city previously authorized a $67,000,000 loan order for upgrades and is operating under debt authorizations tied to the broader sewer separation effort that exceed $160,000,000. Councilors said the forgiveness and the planned upgrade should help reduce the odors reported by residents on both sides of the river and urged administration staff to update neighborhoods on mitigation steps and timelines. Councilor Robinson asked whether the item could be discussed earlier in the meeting because residents have raised the issue repeatedly; the council agreed to move the report up on the docket so staff could summarize the relief the city had received. City officials noted the project financing is being repaid from sewer enterprise funds — paid by utility ratepayers — and that the forgiveness provides direct relief to that fund’s operating budget and rate pressure. Officials also said multiple awards can be made for a single project and that the city has previously received other state-level loan assistance for water and sewer projects. No formal council vote was required on the informational report; staff committed to provide follow-up details on odor-control measures and to keep the council informed as the upgrade proceeds.