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Council sets hearing date to consider up to $3 million sewer revenue loan for expanded wastewater work
Summary
Council approved a resolution to fix a date for a public hearing on a sewer revenue loan and disbursement agreement to borrow up to $3,000,000 to expand wastewater and creek mitigation work tied to the city—s SRF program.
The Nevada City Council approved a resolution to set a public hearing date on a proposal to enter into a sewer revenue loan and disbursement agreement and to borrow a principal amount not to exceed $3,000,000.
City staff said the borrowing authority is tied to the city—s State Revolving Fund (SRF) program and would allow the city to expand current wastewater projects if it chooses. "With our SRF program...we currently the projects that we are currently undergoing that was a cost of $2,000,000. We have earned up to 3,000,000. And so we need to pass this so we can potentially expand the project if we can and if we, choose to do so," a staff presenter said during the meeting.
Staff explained the SRF program funding comes from interest accumulated through the wastewater facility and that earning the $3,000,000 authorization would permit the city to pursue additional design work — including extended plans to work further down the creek and address sediment and erosion — if permits and other approvals are obtained. "There are some other steps that we will need to be doing. We want to get an additional permit, which does take a long time," staff said.
Councilors moved and seconded the resolution and the motion carried; the minutes record the council voting to pass the resolution to fix the public hearing date. No final borrowing occurred at the meeting; the action schedules the public hearing and preserves the city's option to borrow up to the $3,000,000 ceiling.
What this means: The resolution authorizes staff to pursue the required steps to bring a loan agreement to a public hearing and eventual council vote. Staff emphasized permitting and further design work will be required before any funds are borrowed or spent.
Next steps: A public hearing will be set (date fixed by the resolution); if the council later approves the loan, the city will move forward with SRF disbursement procedures and any permit requirements identified by staff.
