Vermillion council authorizes state funding applications for landfill Cell 7 and water‑treatment improvements
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Summary
Council authorized resolutions Jan. 5 to apply for state assistance for a landfill Cell 7 expansion (SWM grant and SRF loan) and additional SRF funds for water‑treatment improvements after bids exceeded earlier estimates.
The Vermillion City Council on Jan. 5 authorized two resolutions to apply for state financial assistance for separate infrastructure projects: expansion/partial closure work at the municipal landfill (Cell 7 and partial closure of Cells 3–5) and additional funding for a water‑treatment improvement project.
Jose (city staff) told the council the 2026 budget includes the landfill Cell 7 activation and partial closures and that the city applied for a solid waste management (SWM) grant of $655,000 and a clean water State Revolving Fund (SRF) loan of $2,045,375. Jose said the SRF loan would be for 10 years at 3.5% interest and that staff recommends council authorize the application and designate the mayor and city manager or city manager as authorized representatives to execute documentation required by the state program.
Separately, Shane (city staff) reviewed the water treatment project: Vermillion previously received a $7,000,000 SRF loan in March 2023; engineering work cost $673,500 and the distribution project (completed in 2024) cost $1,282,305.75. The base bid for the water treatment improvements accepted in September 2025 was $6,103,940, exceeding the original SRF amount. Staff requested authorization to apply for an additional SRF loan not to exceed $1,015,000 for 30 years at 3% interest.
Councilors pressed staff for clearer cost breakdowns. Councilor 19 (Holland) noted an apparent arithmetic discrepancy between previously borrowed amounts and new requests; staff said some earlier costs were paid from reserves and some figures in the materials mixed borrowed and non‑borrowed costs. City staff committed to provide a consistent breakdown of total project costs and what remains to be borrowed.
Both resolutions passed by council voice vote. The landfill SRF application and the additional SRF loan application for the water treatment project allow the city to pursue grant/loan combinations and the staff‑recommended loan terms. The council also approved a professional services contract (see related item) for engineering work on Cell 7.
What’s next: Staff will submit the applications to the relevant state program(s) and return to council with a clarified project‑cost breakdown and the bids when procurement moves forward.
