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Commission approves $37 million Clean Water Trust loan for wastewater work; one abstention
Summary
The Lynn Water Commission voted to adopt a resolution authorizing a Clean Water Trust loan (commitment CW-2462) to finance phases of the city's combined sewer overflow and wastewater facility work. The loan totals $37 million before debt forgiveness; one commissioner abstained.
The Lynn Water Commission voted to adopt a resolution authorizing a Clean Water Trust loan under commitment CW-2462 to fund the next phase of wastewater and CSO (combined sewer overflow) work.
Ryan (staff member) told the commission that the trust had split repayment into two loan applications and that the first loan in front of the commission is for $37,000,000. He said the loan includes about $10,000,000 of debt forgiveness, reducing the effective financed amount and that the loan carries a roughly 2.2 percent interest rate over 30 years, producing an annual payment of about $1.3 million when repayments begin. "We got $10,000,000 debt forgiveness," Ryan said. "That's great news." He also said the first payment was expected in January 2026.
Commissioner Vinny moved to adopt the resolution prepared by bond counsel in connection with the commission's Clean Water Trust loan (CW-24-62); another member seconded and a roll call vote followed. Commissioners present cast affirmative votes except Commissioner Sloane, who registered an abstention. The resolution passed.
The staff presentation said the loan will finance remaining phases of CSO separation and wastewater facility improvements, including pump station work and major construction items already in progress. Ryan said the commission had operated on a pass-through basis for invoices until now but will begin direct loan repayments under the trust’s schedule. He also indicated additional related loan activity for next fiscal year as work continues.
The commission did not amend the loan terms at the meeting; staff said bond counsel would complete required questionnaire work and issue a green-light letter before closing. No detailed repayment schedule beyond the staff estimate was adopted at the meeting.
The vote followed routine review of project invoices and construction progress presented earlier in the meeting. The commission had received updated invoices and a look-ahead schedule in the meeting packet.
The resolution adoption moves the Clean Water Trust financing forward; staff said they will return with paperwork and any remaining administrative steps needed for closing.
