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Williston adopts resolution backing $16 million WAWSA SRF loan for regional water improvements
Summary
The commission approved Resolution 26‑006 to authorize a regional SRF loan for Western Area Water Supply Authority (WAWSA): up to $16 million principal, 1.50% interest plus 0.50% admin fee, 30‑year term, and a $730,800 debt service reserve. Members must provide secondary security through reserve and rate covenants.
Finance Director Hercules Cummings presented Resolution 26‑006, which authorizes the city to enter the agreement required for the North Dakota Public Finance Authority (NDPFA) Drinking Water State Revolving Fund loan to the Western Area Water Supply Authority (WAWSA).
Cummings said the loan is for an amount not to exceed $16,000,000 (Loan No. 257) to support regional water supply and Phase IX expansion projects. Key preliminary terms summarized for the commission included a 1.50% interest rate with an additional 0.50% administration fee, a 30‑year amortization with final maturity on Sept. 1, 2056, a first interest payment on March 1, 2026 and first principal payment on Sept. 1, 2027. The debt service reserve was listed at $730,800 and the loan’s total principal and interest was shown as $20,201,100 (total cost with admin fee $21,601,467).
Cummings explained the city and other member entities must provide secondary security in the form of reserve account coverage for any shortfall and a rate covenant requiring 110% Net Revenue coverage. On a motion by Commissioner Bekkedahl, seconded by Commissioner Gjovig, the commission approved Resolution 26‑006 unanimously.
