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Chino Valley council approves $10 million loan for wastewater reclamation upgrades
Summary
The Chino Valley Town Council unanimously approved Resolution 2026-1320 to accept a $10 million Clean Water State Revolving Fund loan to finance combined phase one and two upgrades at the town’s water reclamation facility, with roughly $1.3 million in forgivable principal and a 20-year loan not to exceed 4.4% interest.
The Chino Valley Town Council unanimously approved a $10 million Clean Water State Revolving Fund loan to finance improvements at the town’s water reclamation facility.
Town staff described the project as a combined phase one and two scope that includes EQ basins, upgrades to existing lift stations, sludge storage tanks and pumps, site electrical work, a UV disinfection upgrade and a pilot study for a PAS process. Staff said engineering and design services were provided by the town’s contract engineer, PACE.
The resolution authorizes acceptance of the loan and execution of related loan documents. According to staff, the loan package includes about $1.3 million in forgivable principal that reduces the town’s amortizing obligation to roughly $8.7 million; the financing was presented as a 20-year loan with an interest cap not to exceed 4.4 percent. Staff stated a loan-closing target of July 9, subject to final document completion.
Town staff said the wastewater fund’s performance has improved in recent years after fee changes, but the new loan will likely require a temporary general-fund subsidy of about $100,000–$150,000 annually until two existing loans expire in the next few years. Staff noted that retiring those loans would free roughly $400,000 in annual payments to help cover the new debt service and that projected new customers and buy-in fees (for example, an RV park) will add recurring revenue.
Council members asked staff to clarify whether the project adds new lift stations or upgrades existing ones; staff confirmed the work upgrades existing lift stations rather than creating new off-site stations. After discussion, a motion to adopt Resolution No. 2026-1320 passed on a 7–0 roll call (Council members Stanwick, Switzer, Holt, Phillips, McCaffy, Vice Mayor Gil and Mayor Armstrong voting yes).
The loan approval authorizes town staff to complete loan-closing steps and move forward with the project; council did not specify a construction start date in the meeting.
