Aberdeen — The City of Aberdeen council on Dec. 22 approved a resolution authorizing the city to apply for the final state loan needed to complete upgrades to the wastewater treatment plant and designated a city representative to sign payment requests.

At a public hearing Jordan, city staff, said the project’s financing has been divided into three loan requests to match funding availability. Leslie Ann Palmer, grant specialist at the Northeast Council of Governments, told the council the application covers the city’s remaining financing need to finish the project: "We're here asking for the last $16,198,000 needed to complete the improvements for the wastewater treatment facility," she said, adding the request is likely to be structured as a 30-year loan at a 4% interest rate.

Palmer noted the South Dakota Department of Natural Resources requires a 110% debt coverage factor to approve this type of loan and that, under the current rate proposal, the requirement averages about $8.93 per user. In subsequent comments Palmer referenced the outstanding balance at approximately $16,898,000; the figures were both stated on the record during discussion.

City staff recommended approving the resolution to submit the application and to authorize the city manager or his designee to sign application documents and draw requests. Council members asked clarifying questions about whether the proposed rate increase applies only to wastewater customers (Jordan: it is allocated solely to wastewater) and how contingencies in the loan would be handled (Palmer: the loan amount will be adjusted downward if project bills come in lower).

Council then took a roll-call vote and approved the resolution authorizing the application. The council also recorded that Dave (city staff) would be authorized to sign draws for the project.

The council’s approval moves the city to the next administrative step of submitting the loan application; loan terms, final loan amount and any subsequent rate adjustments remain subject to the loan approval process and final project costs.