Greenfield Council OKs $111.3 million financing package for wastewater plant, including $75 million grant

The City Council on April 14 authorized an installment-sale agreement with the State Water Resources Control Board to finance a new wastewater treatment plant totaling $111.3 million, city staff said.

The financing package includes $75 million in principal forgiveness — effectively a grant — and a $36.3 million low-interest loan from the state revolving fund that staff said carries an estimated rate of about 2.2 percent. The loan will be repaid from the wastewater enterprise fund over a 30-year term, with repayments expected to begin in 2031, according to staff presentation.

Why it matters: city staff and council described the work as critical to replace aging infrastructure, increase treatment capacity and meet environmental requirements. The project is large enough that staff said the state’s reimbursement structure will require the city to secure interim cash‑flow financing during construction to bridge reimbursement timing.

“We recommend approval of the resolution,” the staff member presenting financing told the council, summarizing the agreement’s structure and next steps. Staff estimated an annual debt service for the loan portion of roughly $1.7–$1.8 million and told the council the loan repayment and reserves will be funded entirely from the wastewater enterprise fund, not the general fund.

City staff outlined additional work now under way: pursuing short‑term cash‑flow financing (a revolving line of credit), finalizing construction management procurement, and completing design documents the city expects to submit to the state for review. Staff also said the project timeline anticipates the city requesting reimbursement of preconstruction costs once the agreement is fully executed; the first reimbursement request was estimated at about $10 million.

Cash‑flow risks and mitigation: staff warned of a potential cash‑flow gap during construction (estimates between $17 million and $20 million in the late‑2028/early‑2029 timeframe) because state reimbursement is on a reimbursement basis. The council authorized staff to pursue interim financing to cover that gap and proceed with procurement and preconstruction activities.

Council reaction: several council members thanked staff and state partners for securing favorable terms. One council member said the $75 million principal forgiveness was “a huge portion” of the funding that will reduce the burden on ratepayers. The resolution authorizing the agreement passed on the council’s voice vote; the record shows one dissent was noted during roll call.

What’s next: staff will finalize the construction‑management RFP, submit design materials to the state, pursue cash‑flow financing, and begin construction procurement. City officials said they expect construction to be advertised once final design and state approvals are complete.