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Richmond commission urges select board to apply for CWSRF Step 2 loan to finish wastewater plant design
Summary
The Richmond Water & Sewer Commission voted June 1 to recommend that the select board apply for a Clean Water State Revolving Fund (CWSRF) Step 2 loan to fund preliminary and final design of the wastewater treatment facility 20‑year study. Commissioners were briefed on estimated design costs and financing options and approved the recommendation unanimously.
The Richmond Water & Sewer Commission voted June 1 to recommend that the town’s select board apply for a Clean Water State Revolving Fund (CWSRF) Step 2 loan to finance preliminary and final design work for the wastewater treatment facility’s 20‑year study.
Commissioners were presented design‑phase cost estimates and broader project figures during the meeting. Staff and the attending engineering representative from Wright‑Pierce described an engineering/design estimate in the range of $769,134 and noted a larger construction figure cited by consultants of about $15,536,244; the consultant said that figure does not include a pump station that some budgets have treated separately.
Why it matters: completing final design is a prerequisite for a bond vote and for firm construction estimates. Commission members emphasized that applying for the SRF design loan does not lock the town into using SRF for construction; design funding is commonly available even if the SRF construction funding allocation for a given cycle is capped. Commissioners discussed parallel options — the state Bond Bank and the U.S. Department of Agriculture Rural Development program — as possible sources for construction financing if SRF construction slots are limited.
Commissioners also discussed loan mechanics and timing. The Wright‑Pierce representative explained that design loans are typically structured so that payback does not begin until after construction is complete and noted design financing can be rolled into longer‑term construction financing. Commissioners heard a program example interest rate of about 2% for SRF financing and were told a design loan could be set as a standalone 15‑year obligation if construction financing were sourced elsewhere.
"I move to approve that we recommend that the select board apply for the CWSRF Step Two loan for the preliminary and final design for the wastewater treatment facility 20‑year study," Commissioner Aaron said when placing the motion; the motion was seconded and passed with recorded votes from Commissioners Bard, Aaron, Greg, David and Morgan.
Next steps: the commission’s recommendation will be reflected in the select board packet for the select board’s consideration. Staff agreed to follow up with the state permit issuer to clarify how a major upgrade would affect the town’s 20‑year permit/timing and to share more precise loan amounts and paperwork with the select board packet.
