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Snoqualmie approves $6.8 million low‑interest loan for reclaimed water system improvements
Summary
The City Council approved a resolution accepting a low‑interest loan from the Washington State Clean Water State Revolving Fund to finance upgrades to the city's reclaimed water distribution system.
The Snoqualmie City Council on Feb. 10 approved a resolution accepting a $6,800,000 low‑interest loan from the Washington State Clean Water State Revolving Fund to finance reclaimed water distribution system improvements.
The loan, described by project engineer Andrew Vining as a "$6,800,000 loan'...1.6 interest rate," is intended to help fund upgrades to an aging reclaimed water system and to limit upward pressure on utility rates during construction.
Councilor Vinson introduced the agenda bill and moved approval of Resolution 17-07. Councilor Johnson seconded the motion, and the council approved the resolution by voice vote.
Why it matters: The loan provides below‑market borrowing to pay for infrastructure work the city says is needed to meet current state standards and to extend the life of the reclaimed water system. City staff said using the low rate will reduce financing costs compared with bonding.
Project and financial details: Andrew Vining told the council the city has been awarded a $6,800,000 loan at a 1.6% interest rate and that the structure will let the city draw funds as project contracts are executed. "The intent is to keep our utility rates lower during the construction of the reclaimed water improvements," Vining said. He added that individual contracts under the loan will still follow the city's normal procurement and financial policies.
Council discussion focused on term and rate options. Councilors described different term/rate combinations that had been considered; Vining and council members discussed 20‑ versus 30‑year options and slightly different interest figures raised during committee discussion, and a councilor said borrowing at low rates is generally advisable when available.
No vote totals were recorded in the transcript beyond a voice vote approving the motion. The council approved the resolution and moved forward with the loan acceptance; staff will bring contracts under the loan forward under standard procedures.
Next steps: Contracts to execute the reclamation improvements will be brought back to the council under the city's usual contracting and appropriation processes.
