Finance staff: $6 million drinking-water loan application for Branch Lake submitted after earlier council approval

Speaker 5 said this week that the town has submitted an application for a $6,000,000 Drinking Water State Revolving Fund (DWSRF) loan for the Branch Lake Water treatment plant after the council approved the loan in April 2024 but the application was not filed at that time.

The submission follows what Speaker 5 described as an earlier council approval that did not lead to a timely application. "Back in April 2024... it was brought to council for a $6,000,000, DWSRF loans, the drinking water state revolving fund loan that was approved by council, but the application was not submitted," Speaker 5 said. They added, "So that was done this week." The speaker also said there is not an immediate need to draw funds from the loan.

Why it matters: The DWSRF is a state-managed loan program that communities commonly use to finance drinking-water infrastructure. A submitted application is a procedural step toward securing funds for upgrades at the Branch Lake plant; the timing of application and draw requests affects budget planning and capital scheduling.

What was said and next steps: Speaker 5 said the application has been filed and that staff will follow the normal steps for processing and drawing funds only if and when the town needs to use the loan. No vote or formal council action was recorded in this meeting regarding drawing on the loan. The committee did not set a timeline for when the town would request fund disbursement.

The Finance Committee continues to review water-system budgeting and will discuss related steps with staff as project needs and timelines evolve.