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Williston approves participation in WAWSA $17.8 million SRF loan; Klug votes no
Summary
The Williston Board voted 4-1 to authorize the city's participation in a Western Area Water Supply Authority (WAWSA) State Revolving Fund loan of up to $17.825 million to refinance debt and fund water system improvements; Williston’s allocated share of contingent covenant responsibility is 21.062%.
Williston’s Board of City Commissioners voted 4-1 on Nov. 25 to authorize the city’s participation in a Drinking Water State Revolving Fund (SRF) loan through the Western Area Water Supply Authority (WAWSA).
Hercules Cummings, the city’s finance director, summarized the Agreement Regarding SRF Loan, saying the not-to-exceed $17,825,000 loan would both refinance WAWSA’s outstanding Utility System Revenue Note, Series 2020, and finance improvements to water supply and distribution to expand capacity for current and future users. Cummings said debt service will be paid from residential, commercial and bulk water sales (the “Net Revenue”) and that the loan will be secured by WAWSA’s Series 2025 Utility System Revenue Note.
The agreement requires member districts to cover two types of potential shortfalls: funding a required Debt Service Reserve Account if WAWSA cannot, and making up any failure to meet a 110% Net Revenue rate covenant. Under the schedule attached to the agreement, Williston’s share of covenant responsibility was listed as 21.062%.
Commissioner Bekkedahl moved to approve the authorization agreement and Commissioner Siemieniewski seconded. The motion carried 4-1; President Howard Klug registered the lone dissent. The minutes record approval of Resolution 25-028 to authorize the Agreement between the City of Williston and WAWSA.
The board did not record discussion in the minutes explaining President Klug’s dissenting vote. The agreement text included a provision naming the North Dakota Public Finance Authority as a third-party beneficiary, with enforcement remedies if WAWSA fails to enforce its obligations.
Next steps in the minutes: the board approved the authorization resolution on Nov. 25; the agreement will govern the city’s contingent obligations if WAWSA is unable to meet reserve or covenant requirements.
