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Oxford council authorizes nearly $20 million loan for new water softening facility
Summary
Council adopted a resolution authorizing application for a Water Supply Revolving Loan to finance a new water softening facility; staff said the project cost is roughly $26.8 million with a loan of $19,988,616, $4 million principal forgiveness, and financing repaid via water-user fees. Annual payments and interest were presented to council.
Oxford City Council on June 16 adopted a resolution authorizing the city manager to apply for a Water Supply Revolving Loan to finance construction of a new water softening facility at the municipal water treatment plant.
City Manager Elliot and finance staff outlined the project financing: a contract with Building Crafts, Inc. was approved on June 2; staff reported a loan principal of $19,988,616 with $4 million in principal forgiveness and remaining local funds applied for the project. The total project costs were presented in staff remarks (transcript figures): the manager cited a total project cost figure in the mid-$26 million range and an interest component that produced an estimated annual payment of $953,576.92 over 30 years at an interest rate of about 2.51% as described in the presentation. Staff said the loan would be repaid through current and increased water-user fees.
Council discussed the financing in historical context, comparing the 1988 water facility financing and subsequent refundings, and asked clarifying questions before approving the resolution by voice vote.
The resolution authorizes staff to apply for the state loan program and to designate a repayment source; the council vote adopted the measure on the night of June 16.
