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Rock Springs approves loan amendments to lower rates on wastewater and water meter projects
Summary
The council approved amendments to State Loan and Investment Board loan agreements to refinance the city's wastewater treatment plant expansion loan and the water meter replacement/automated read project, aiming to reduce interest costs; staff indicated modest savings.
The Rock Springs City Council on July 15 approved two amendments to loan agreements with the Wyoming State Loan and Investment Board to refinance existing loans for the city's wastewater treatment plant expansion and for the water meter replacement and automated read project.
City staff said the wastewater loan was taken many years ago and the amendment will lower the interest rate. Alex, a city staff member involved in finance discussions, said the balance of the loan is roughly $1.9 million and that refinancing will reduce interest payments; council discussion estimated annual savings on the order of tens of thousands of dollars. "We love saving money," Alex said during council discussion.
The amendment for the meter replacement and automated read project was also approved; staff described the changes as rate reductions offered by the state loan board. Councilors asked whether the wastewater refinancing was connected to the 6-cent sales tax; staff replied it was not — the loan predates that sales tax and is a separate financing.
Both resolutions were approved by council vote. City staff said the amendments must also be finalized through the Joint Powers Water Board process and the state as required by the loan program.
