Lancaster City Council voted Nov. 25 to authorize interim financing of $32,000,000 to fund preordering of long‑lead materials and support cash flow for construction of a 42‑inch water transmission main.

Councilor Arroyo, noting this is the project's second reading, said the interim loan is intended to ensure materials arrive on time so that construction can begin as scheduled. "Tonight is the second reading of this proposal to borrow $32,000,000 to preorder essential materials, enabling the project to start promptly," Arroyo said.

Director Tina Campbell and bond counsel Daryl Peck described the financing mechanics: the city anticipates securing permanent financing from the Pennsylvania Infrastructure Investment Authority (PennVest) for the larger project (permanent financing of about $49 million was discussed) but needs interim liquidity to order roughly $30 million of equipment with long lead times. Peck told council the most favorable bank proposal came from Fulton Bank at a fixed rate of 4.33% and that the interim note would be structured as a drawdown line of credit, prepayable without penalty and expected to be paid off or rolled into the PennVest financing once awarded.

Peck summarized the timetable: closing the interim financing is expected Dec. 22, materials orders in early January, PennVest consideration of the city's application on Jan. 21, and project completion projected in spring 2027 (materials delivery and subsequent contract work through mid‑2027). He estimated interim interest expense at about $649,000 for the period until permanent financing closes but said that amount represents interest the city would otherwise pay at higher market rates and that the interim step leads to net savings under PennVest terms.

Bond counsel moved an amendment to the ordinance to fill in the principal amount at $32,000,000, identify Fulton Bank as purchaser and paying agent, and set the interest rate at 4.33%. Council voted to amend and then approved the ordinance as amended by roll call.

Councilors and staff said the interim financing is necessary to secure better contractor pricing and to avoid supply delays that could push the project timeline.