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Sarpy County and Cities agency seeks WIFIA loan modification to fund next construction phases
Summary
The Sarpy County and Cities Wastewater Agency approved a resolution to request a WIFIA loan modification that would add Phase 1B and Phase 2 design, permitting and easement acquisition to the loan scope; board members discussed timing, county concurrence and connection-fee liabilities to Omaha.
The Sarpy County and Cities Wastewater Agency on Feb. 26 approved a resolution asking federal WIFIA administrators to modify the agency—s existing loan so it can cover design, permitting and easement acquisition for Phase 1B and Phase 2 of the regional sewer buildout.
The action, Resolution 1 (authorizing formal request to amend the Whitfield loan), authorizes staff to submit a formal written request to the WIFIA program and directs the agency to return with any modification terms for further board and county review. The motion passed on a recorded vote of 6-0.
The request matters because the board expects to draw substantially more WIFIA funds as Phase 1A completes. Agency administrator Dan Hoines told the board the agency has drawn roughly $16 million of the $45 million WIFIA allocation to date and expects about $19 million or more to be available when Phase 1A is substantially complete. Hoines said modifying WIFIA to include design, permitting and easement acquisition for the blue and green line segments would make much of the system shovel-ready and provide certainty to the development community.
Hoines said the agency has discussed the change with county officials and that the county requires a formal request from the agency before it will consider approving an amendment to the loan. He said the WIFIA review typically takes 45 to 60 days and staff hopes to have a modified loan to the board by its May meeting.
Board members asked about the county—s role. One mayor asked whether requiring county approval effectively gives the county a veto; Hoines said the county acts as a backstop under the existing backstop agreement and therefore must approve modifications to either WIFIA or SRF loans. The transcript does not record that the county staff opposed the request.
The WIFIA amendment request was discussed alongside related fiscal items. Hoines reminded the board of a $1.2 million claims item to the City of Omaha for connection fees tied to an interlocal agreement executed in 2021; that payment is scheduled to be made as revenues are received and will be paid in two installments a year. Finance staff confirmed the agency accrued for the $1.2 million liability in the January financial dashboard.
Several mayors said the modification request advances long-running efforts to extend sewer trunk lines into developing areas such as Grama and Gretna and could accelerate development if Omaha temporarily accepts sewer flows while the agency builds out its own lines. Hoines said Omaha has been willing to accept some temporary flows and that the agency has a framework to make the agency whole for connection fees and rate differences.
The resolution directs staff to submit the formal WIFIA modification request and return with any negotiated changes for board and county approval. No contract awards or appropriation changes were approved as part of this motion; those would return to the board according to Hoines.
Votes at a glance: Resolution 1 — authorizing formal request to amend the Whitfield loan: motion to approve; voted 6-0; outcome: approved.
The board scheduled the next regular meeting for March 26; staff said any finalized loan modification would likely return for review at the May meeting should WIFIA proceed on the expected timeline.
