Riverbank council approves form of loan agreement for recycled‑water project amid calls for more study

Riverbank City Council voted on June 10 to approve a resolution authorizing the city to use a construction installment sale agreement with the California State Water Resources Control Board to finance a portion of Phase 1 of the Riverbank Regional Recycled Water Project.

The agreement approved by the council authorizes staff to finalize the form of the agreement and pledges net revenues of the city’s wastewater enterprise as the repayment source if the city later executes the loan. The motion as approved also directed staff and consultants to continue studying alternatives and to return with additional feasibility information and community briefing materials.

The council debate and public comment were lengthy and sharply focused on cost, timing and alternatives. City staff told the council the State Water Board offer would finance up to $85 million at about a 2% interest rate over 30 years; staff said that financing would cover a substantial portion of current construction estimates but not…