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WIFIA draw expected in late 2025; staff to prepare dry run; consultant rates recommended to rise 3%
Summary
Staff told the finance committee that WIFIA loan draws are expected to begin in third or fourth quarter 2025 and that the loan carries a 2.08% interest rate with five years of deferred principal after substantial completion and a 35‑year repayment. The executive director recommended a 3% consultant-fee increase for 2025.
Authority staff briefed the Finance Committee on two financing and cost items: the timing and terms for draws on the WIFIA loan, and a recommended annual consultant-fee increase.
John Shockley updated the committee on the WIFIA loan, saying the authority closed the WIFIA loan in 2021 and, during construction, has been paying only annual service fees rather than interest because draws were not being made. Shockley said staff anticipate beginning draws in the third or fourth quarter of 2025 and will conduct a "dry run" of the draw paperwork in advance because the federal draw process requires documentation. He recapped the loan terms stated in the packet: a 2.08% interest rate, five years of deferred principal payments after substantial completion and a 35-year repayment period.
Separately, Executive Director Jason Benson presented a recommended 3% increase to consultant hourly/rate schedules for 2025. Benson said most consultant firms requested 3–5% increases and recommended a uniform 3% increase; for consultants new in 2024, staff proposed using 2024 rate increases as appropriate. The consultant-rate recommendation was presented as informational and no committee action was recorded at the meeting.
Staff indicated they will prepare the WIFIA draw paperwork and report timing and any material draw activity back to the committee in future finance packets.
