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DuBois staff warns of likely $4.5M bridge loan as PennVest withholds wastewater funds
Summary
Interim manager Ben told council June 17 the city may need a short-term $4.5 million bridge loan from NextEra because PennVest will withhold funds until the wastewater plant punch list is complete; staff also outlined options to fund a non-budgeted waterfall reconstruction and previewed a proposed upper-tier water-rate ordinance for large users.
Interim manager Ben told the DuBois City Council on June 17 that the city will likely need a short-term bridge loan of about $4.5 million to cover payments while PennVest withholds the same amount until the wastewater treatment plant’s punch list is finished.
Ben said the loan would be temporary and that the city has asked a partner, NextEra, to provide the bridge financing. "We are very low on cash if we have to keep making monthly payments without drawing down on PennVest," he said, advising council that the matter will likely appear on a future agenda for formal authorization.
On a separate capital matter, Ben reviewed a proposed approach to repairing the boulevard waterfall, noting that contractor labor and equipment have been offered as donations but the project is not budgeted and could exceed $100,000. He recommended bidding concrete work, using cooperative purchasing for materials and soliciting private donations combined with recreation-fund money. Council members raised concerns about documenting volunteer labor and workers’ compensation, and staff agreed to prepare agreements.
Staff also briefed the council on an upcoming ordinance that would allow the city to enter special contracts with very large water users (roughly 4.5 million gallons per month) to set upper-tier rates; the ordinance is on the agenda for advertisement and a scheduled vote in the first week of July.
Council approved routine items including subdivision approvals and a roadway variance during the meeting. No formal loan authorization was requested or approved June 17; Ben said the loan request will return to council for possible action once paperwork and timing are clear.
