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Williston approves participation in WAWSA $17.8M SRF loan; Klug votes no
Summary
The Board authorized Williston’s participation in a WAWSA Drinking Water SRF loan not to exceed $17,825,000, including member covenants that allocate Williston 21.062% of any shortfall; the resolution passed 4–1 with President Howard Klug opposed.
The Williston Board of City Commissioners voted to approve Resolution 25-028 on Nov. 25, authorizing the city's participation in an agreement with the Western Area Water Supply Authority (WAWSA) tied to a Drinking Water State Revolving Fund (SRF) loan not to exceed $17,825,000.
Hercules Cummings, Finance Director, summarized the agreement and the loan’s purposes: "The purpose of the loan is twofold. Refinancing WAWSA's existing debt, specifically the $16,500,000 Utility System Revenue Note, Series 2020 and making improvements to its water supply and distribution system, including system expansion and increasing capacity for existing and future users." The loan’s debt service will be paid from WAWSA’s net revenue (residential, commercial and bulk water sales), and the NDPFA requires member commitments to cover reserve-account or rate covenant shortfalls.
Under the agreement presented to commissioners, Williston would be responsible for 21.062% of any shortfall required to meet the Debt Service Reserve Account or the 110% Net Revenue covenant. Commissioner Bekkedahl moved to approve the resolution and Commissioner Siemieniewski seconded. The commission approved the resolution with votes from Siemieniewski, Bervig, Gjovig and Bekkedahl; President Klug voted no, yielding a 4–1 recorded outcome.
Why it matters: The resolution allows Williston to participate in WAWSA’s refinancing and capital program, but it also creates a contingent obligation for members to cover certain financing shortfalls. The minutes record the city's specific share of potential shortfall liability and the NDPFA’s role as a third-party beneficiary entitled to enforce the agreement.
The resolution was approved Nov. 25; the minutes do not show further implementation steps at that meeting beyond authorizing the agreement.
