Diversion Authority reports $42 million in legacy draws; readies WIFIA submission and 2027 bond plan

At its May 21, 2025, meeting the Diversion Authority Finance Committee reviewed recent cash flows and financial planning for the diversion project, reporting just over $42 million in legacy fund draws to date and internal preparations for federal WIFIA loan submissions and end-of-project bonding in 2027.

The committee was told the authority received $22 million in legacy fund draws during the past month, bringing total legacy draws to just over $42,000,000 and leaving roughly $45,000,000 available for drawdown this year; staff said that once the legacy draws reach about $87,000,000 the authority will no longer be able to draw from that fund source. Susan Thompson, finance director for the City of Fargo, also presented the period bills totaling $2,136,851 and the committee approved them by roll call vote.

The cash-budget presentation by Paul Barthol noted the project was underspent through this point in the year: the authority has expended about $42,800,000 against an expected $425,000,000 budget to date, with staff and the committee expecting additional milestone payments to developers later in the year. Barthol told the committee there had been several smaller land closings and mitigation work, and that administrative operations were tracking below budget, in part because of recent staff reductions.

Separately, staff reported the authority is conducting an internal “dry run” to prepare the documentation required for WIFIA loan draws; the exercise will include authority staff and project management consultant personnel to ensure all federal submission requirements are met. The committee was also briefed on an outline for an end-of-project financing in 2027 that would issue two bond tranches—a definitive refunding improvement bond and a subordinated sales-tax bond—to wrap up remaining costs, with final amounts to depend on final project expenses.

The committee approved the finance report and the cash- and budget-related items on the agenda by roll call. The authority’s statement of net position presented at the meeting showed total assets near $338,000,000 and total liabilities of about $767,000.

The committee did not take additional financing decisions at the meeting; staff said further actions and firm bond sizing would follow as project expenses and the WIFIA submission timetable become clearer.