Seward council approves low‑interest loan agreement for wastewater plant expansion

The Seward City Council unanimously adopted Resolution No. 2025-12 to enter a loan agreement with the Nebraska Department of Environment and Energy (NDE) to finance improvements to the city’s wastewater treatment plant.

City staff reported the loan would be offered through the state’s revolving fund at an interest rate the city described as about 1.4% for a 30‑year term. Mike, a city staff member presenting the item, told the council that the state indicated it could cover the expanded project “to the tune of about $50.55 million,” and that the SRF loan terms would significantly lower annual debt service compared with a commercial borrowing alternative.

Why it matters: Staff said a commercial borrowing scenario at roughly 4% over 20 years would have produced annual payments of about $3.7 million, while the SRF loan at 1.4% over 30 years would produce annual payments closer to $2.0 million under the project assumptions discussed. City staff described the difference as a substantial reduction in annual costs to ratepayers if the city proceeds under the state program.

What council approved: The resolution authorizes city representatives to execute the draft loan agreement with NDE and accept the program terms. Mike said state rates are expected to rise modestly in July, so staff recommended acting now to secure the more favorable rate.

Project context and next steps: Staff said the SRF loan will be paired with federal and state project steps including design and bidding; the state remains the contracting authority for the construction procurement tied to the state‑funded elements. Mike noted competitive contractor interest and said staff expect to seek bids when design is complete.

Ending: The resolution passed 7-0; staff will proceed with finalizing loan documents and return with any required agreements or implementation steps to the council as the project moves into design and procurement phases.