Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the Infrastructure Finance topic
No spam. Unsubscribe anytime.
Whitefish authorizes $7.297 million water revenue bond to complete South Water Storage phase one
Summary
The council approved a $7.297 million DNRC loan package (Series 2026A/B) May 18 to finish phase one of the South Water Storage project (tank platform and 1 MG storage tank); Series 2026A is a $1 million subordinate loan eligible for forgiveness if loan conditions are met and Series 2026B is $6.297 million; overall project uses impact fees, cash reserves and the bond.
The Whitefish City Council authorized a water system revenue bond package on May 18 to complete phase one of the South Water Storage project, which includes construction of a platform and a 1‑million‑gallon storage tank at the city shop site and (in a later phase) a water line along West 18th Street.
Finance staff (Laney) said the financing package submitted through the DNRC State Revolving Loan Fund includes Series 2026A, a $1 million subordinate taxable loan that may be forgiven if the city completes the parallel Series 2026B loan obligations in a timely manner, and Series 2026B, a $6.297 million loan for the remainder of the financing. The supplemental bond resolution sets a 20‑year term and an expected interest rate of roughly 2% (plus administrative and loan‑loss reserve charges totaling about 0.5 percentage points if applicable); Series 2026A would carry 0% interest and search charges if forgiveness criteria are met.
Laney outlined the phase‑by‑phase budget: phase one total cost about $8.457 million (including $1.16 million from water impact fees and the DNRC loans), and phase two (the West 18th Street waterline) requires roughly $3 million, funded without loan proceeds according to the staff memo. The project is under construction (phase one awarded to Landmark Structures) and staff anticipates tank/platform completion by June 2027 and the 18th Street line in late 2026.
Council approved the supplemental bond resolution authorizing issuance of the DNRC loans and related documents. Staff said the use of water impact fees to support growth‑related capacity is consistent with prior practice and an upcoming impact‑fee update will reflect the financing plan.
The approval authorizes the city manager and finance staff to finalize loan documents and proceed with the borrowing; the council emphasized oversight and reporting on progress and repayment.
