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Portage council approves $6.98 million interim sewer revenue anticipation bond to bridge state loan timing
Summary
The Portage Common Council approved resolution 25-032 authorizing a $6,984,000 sewerage revenue anticipation note to cover invoices on the wastewater treatment project until the State Clean Water Fund loan closes, with Portage State Bank providing interim financing.
Portage — The Portage Common Council on Dec. 15 approved Resolution 25-032 to issue a $6,984,000 sewerage revenue anticipation note to bridge payments for the city’s wastewater treatment project until a State Clean Water Fund loan can close.
City staff said the project finished design and was bid in 2025 and that invoices are arriving before the state loan is scheduled to close, now expected in February 2026. To cover near-term bills, staff recommended seeking an additional $4,384,000 in interim financing, bringing the total note to $6,984,000. Portage State Bank was identified as the lender; the packet notes an additional fee of $10,960 and a $2,500 administration fee for loan documentation.
Staff described the note as a draw-type loan; the city will pay interest only on amounts drawn and intends to repay the note when the State Clean Water Fund loan closes. Council members pressed staff on alternatives, including using internal funds, tax revenue or pausing work; staff said moving internal funds would create auditing complications and may not cover the anticipated cash-flow needs.
The council approved the resolution by roll-call vote. According to staff, the note will be paid in full when the state loan closes and the interest and fees will be included in that eventual loan for reimbursement.
Next steps: the city expects a loan closing timeline from the state in mid-December and staff indicated they would proceed to close the interim note with the bank as soon as practical.
