Belvidere panel forwards loan plan and $1.88 million engineering contract for $87.3M wastewater upgrade

Belvidere public works officials told the Committee of the Whole on Sept. 8 that the city must begin engineering work for an $87.3 million wastewater treatment plant improvement project and recommended a short‑term interfund loan to cover engineering costs until a state loan is finalized. Director Brent Anderson said a preliminary engineering work order from Baxter & Woodman is for $1,882,982 and will take about 14 months to complete; the firm’s total estimated engineering cost for the project is $5,270,000.

Anderson said engineering expenses are eligible for inclusion in the state water pollution control loan program, but the loan agreement will not be finalized until after the project is bid. To avoid delaying design work, he recommended borrowing from the general fund until state loan proceeds are available. “Engineering expenses are loan eligible,” Anderson said, adding that staff recommends a bridge loan from the general fund so work can begin.

Alderman Peterson asked whether the interfund transfer would carry interest; Anderson recommended a 0% internal loan to keep future rate increases as small as possible. Anderson told the committee the first payment on the state loan would be due 12 months after substantial completion, and that the city expects a series of rate increases through the 2030s to finance the project.

The committee voted to forward an ordinance authorizing a loan from the general fund to the water and sewer fund and to approve the Baxter & Woodman preliminary engineering work order for $1,882,982.

The next steps, according to Anderson, include finalizing the work order, submitting funding nomination forms to the state loan program, and returning to the full city council for adoption of the loan ordinance and related approvals.