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Spooner council approves $530,000 sewer note to fund vac truck and lining project
Summary
The Spooner City Council voted July 1 to award a $530,000, 10-year sewer note to Shell Lake State Bank at 4.75% to buy a vac truck and fund a 2025 sewer lining project after staff said current sewer reserves could not cover both costs.
The Spooner City Council on July 1 approved a $530,000 note to fund a vac truck purchase and a 2025 sewer lining project, awarding the loan to Shell Lake State Bank at a 4.75% fixed rate for 10 years.
Council member Koverman introduced the recommendation, saying the city’s current sewer rates and reserve balance could not sustain both the equipment purchase and the lining work without borrowing. Council discussed three bids; staff and consultant Ehlers recommended the Shell Lake State Bank offer as the most favorable. Council was told the note carries no prepayment penalty.
The motion to award the note (moved by Dunn, seconded by Everroad) passed. Council members said the financing was chosen to spread costs without immediately raising sewer rates; Ehlers was asked to comment on any Public Service Commission restrictions on intra-utility loans and related regulations.
The note will fund the vac truck and the lining project; details on the vac truck procurement timeline and the sewer-lining contractor selection were not specified at the meeting. The council’s vote authorizes city staff to complete loan paperwork with Shell Lake State Bank and proceed with project scheduling.
