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McCall Council accepts DEQ loan offer to advance large water project
Summary
The City Council adopted Resolution 25-6 to accept an Idaho Department of Environmental Quality loan offer of up to $16.5 million so design and reimbursement steps can proceed toward a planned multi-phase water project.
The McCall City Council on a unanimous recorded vote accepted a loan offer from the Idaho Department of Environmental Quality (DEQ) of up to $16,500,000 to support the city's large water project, adopting Resolution 25-6.
Public Works Director Nathan Stewart told the council the DEQ loan offer is the financing pathway staff determined to be most economical after reviewing alternatives and that DEQ will not review the city's design plans until the loan agreement is finalized. "By taking this action tonight is the first step," Stewart said, describing the process that lets the city request reimbursement during construction and later convert the borrowing into a 20-year loan with an expected interest rate of 2.75 percent.
The loan acceptance authorizes city staff to execute project contracts and submit pay applications to be reimbursed by the DEQ loan program. Stewart said bond counsel and the city's financial adviser reviewed the offer and recommended the DEQ State Revolving Fund loan as the best path.
Council members voted by roll call after a motion and second; the motion carried. Council members present voted yes to adopt Resolution 25-6 authorizing the mayor to execute the DEQ loan offer and related documents.
The resolution places the city in a position to seek reimbursement for up to $16,500,000 of eligible project costs during the construction phase, then later issue bonds to convert that amount to a 20-year loan. Stewart said future council action will be required to issue the bond once the project expense period is complete.
Council members asked no substantive follow-up questions at the time and heard Stewart's report that the legal and financial review had been completed. Next steps, as described by staff, include finalizing loan documents, submitting designs to DEQ for review, and preparing construction contracts for council approval.
The council's vote was taken as part of the regular agenda; staff said the timing was important because DEQ will not review or accept design documents without the financing commitment in place.
For now, adoption of Resolution 25-6 is an authorization step that allows staff to proceed with procurement and construction administration under the loan terms; the city will return to council for bond issuance and other formal actions when the project reaches that milestone.
