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Diversion authority reports $47.5 million WIFIA reimbursement; loan will build reserves
Summary
Staff told the Metro Flood Diversion Authority the project received its first WIFIA requisition of about $47.5 million as reimbursement for prior channel expenses; the $569 million loan increases trustee-held reserves and temporarily reduces sales-tax distributions to the authority.
The Metro Flood Diversion Authority reported that it received its first requisition payment from the WIFIA loan program — roughly $47.5 million — which reimburses prior expenses on the diversion channel, staff said.
Legal/finance staff explained that the WIFIA facility totals about $569 million in principal with an interest rate near 2.08%; as draws increase the trustee (Bank of North Dakota) must retain additional sales-tax receipts each month to build a required loan reserve. Staff said the trustee’s reserve build will modestly reduce the sales-tax distribution to the authority — on the order of about $1 million in this reporting period — because some receipts are being held to satisfy the loan’s reserve requirements.
John Shockley, responding to board questions, said the disbursement process will continue (submissions may be made on the first or fifteenth of each month) and that members should expect the additional draw to appear in next month’s financial reporting because the requisition arrived after the current reporting cut-off.
The report was informational only; no board action was required. Finance committee members also reviewed related contracting and budget items during their committee meeting.
