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Benton City approves sewer construction funding package: $1.44 million loan, roughly $220,000 grant
Summary
Council approved a construction funding agreement providing a $1,443,348 loan (1.7% for 20 years) and about $220,000 in grants for sewer system repairs; council discussed budgeting assumptions, term length and the absence of prepayment penalties.
Benton City Council approved a construction funding agreement with the Washington State Public Works Board to support sewer system repairs and upgrades.
Staff told the council the funding package includes a loan of $1,443,348 at an interest rate of 1.7% amortized over 20 years, plus approximately $220,000 in grant funding. The council discussed earlier budget assumptions (staff had budgeted at a 4% rate and a 15‑year term) and confirmed that the actual loan term is 20 years; staff noted there is no penalty for early payment and that early completion could reduce the interest owed.
Why it matters: the funding will finance repairs to the sewer system and address sections with structural issues; council members discussed the importance of identifying sections that need full replacement and balancing short‑term fixes with long‑term infrastructure planning.
Vote and next steps: the council approved the measure by voice vote and directed staff to proceed with contract execution and budgeting steps consistent with the loan terms. Staff said early completion could reduce total interest costs and that the package included a grant component to offset some cost.
