Redmond City Council on June 10 approved a resolution authorizing amendments to a Clean Water State Revolving Fund loan that will convert a design loan into construction financing and authorize up to $81,250,000 for the Redmond Wetlands Complex.

The loan resolution, introduced by Linda Korn, the city’s budget analyst overseeing utilities, converts the design loan into a construction loan and adds an initial $40 million amendment; staff told council a second DEQ amendment for roughly $34.825 million is expected in the first quarter of fiscal 2026. Korn said the council will approve the loan amendments in two steps and that the project is expected to be completed in winter 2027, with loan payments beginning about six months later in spring 2028.

That timeline, Korn said, informed the city’s cash‑flow planning. “We will be drawing as needed,” she told the council, describing typical SRF disbursement procedures for construction projects. Korn presented the project cost breakdown: a $77,000,000 construction contract to Taylor Northwest, roughly $2,000,000 for construction management and inspection, $5,600,000 for design and a 5 percent contingency of $4,200,000, for a total project cost staff listed as $88,800,000. She said DEQ has included a roughly $550,000 forgivable portion within the authorized loan amount.

Staff also summarized the loan terms and the utility’s financial analysis. Korn said the DEQ loan will carry a 1.82 percent annual interest rate plus a 0.5 percent annual fee, producing an effective annual rate staff cited as about 3.232 percent, and that the loan term will be 30 years. She told the council an estimated annual debt service for the wastewater fund when the loan is drawn and amortized will be about $3.5 million (staff said that figure was calculated based on an anticipated $74.5 million draw rather than the maximum $81.25 million). Korn also reported a required loan reserve of roughly $1.7 million.

Council members asked about longevity and capacity. Korn said the new wetlands facility would provide about 20 years of capacity with the ability to extend operations beyond that horizon. Jason F., deputy city manager, and others commended utility staff for stress testing and financial planning behind the loan approval.

Council adopted the resolution (2025‑10) by voice vote. Following the council action, staff said they will execute the amendment paperwork with DEQ and proceed with construction draws according to the project schedule.

What happens next: staff will implement the DEQ amendments, continue construction oversight, and return to the council as needed for budget adjustments tied to loan draws and other project funding steps.