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Chelsea manager seeks $15.385M Clean Water Trust loan for Park and Pearl sewer separation; council to consider vote in June
Summary
City manager requested a revised loan vote to accept a $15,385,068 Massachusetts Clean Water Trust loan (1.5% interest) and a $5,000,000 MassWorks grant for Park and Pearl sewer separation; manager asked council to act by June 30 with a first vote planned for June 8.
The Chelsea City Council on May 4 received a city-manager communication requesting a revised borrowing authorization to fund sewer separation and utility improvements at Park and Pearl streets.
The communication states the city has been approved for a $15,385,068 loan from the Massachusetts Clean Water Trust under the Clean Water State Revolving Fund with an interest rate of 1.5% and principal-forgiveness terms indicated in the letter. The city has also received a $5,000,000 MassWorks grant for the utility work at Park and Pearl. The manager told the council that entering the SRF program is the first time Chelsea has been accepted into that state funding pool and emphasized the financial benefits of the low rate and forgiveness program.
Council members discussed whether to send the order to the Ways and Means subcommittee or proceed to second reading on the full council agenda. The City Manager recommended the council take an initial vote in June (manager requested the first vote on June 8) so the city can submit required documents to the state and preserve eligibility; the communication notes a June 30 deadline for the council vote to maintain eligibility for the CWSRF award.
The council moved the matter to a second reading, to be taken up at the council’s first June meeting. No borrowing was executed May 4; any final authorization will require a subsequent vote on the loan order following required readings and any hearings.
