Riverbank council approves form of state loan for recycled‑water project amid calls to seek more grants and alternatives

The Riverbank City Council voted to approve the form of a construction installment sale agreement with the State Water Resources Control Board on June 10 that would allow the city to borrow to finance a portion of the Riverbank Regional Recycled Water Project Phase 1 — while asking staff to continue pursuing grants and evaluate alternatives to limit rate impacts.

Council members were divided in public remarks and during debate but ultimately approved the step that allows staff to finalize paperwork and apply for the state loan program. The agreement as presented pledges net wastewater enterprise revenues as the repayment source and would cover up to about $85 million over 30 years at an approximately 2 percent annual interest rate, according to staff presentation; repayment would begin one year after project completion.

The decision came after more than an hour of public comment and lengthy council discussion about rising construction costs, possible alternatives (including upgrades to the existing plant or sending wastewater to another regional plant), and the effect on resident sewer bills. Dozens of residents and community leaders urged caution and asked the council to delay committing to long‑term debt…