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Wastewater tank cleaning and interfund loan push sewer fund; staff weigh lenders
Summary
Staff reported solids in the wastewater tanks required removal (about 40,000 gallons), with $25,000 already spent and more remediation ongoing. The city is arranging a $40,000 loan to repay an interfund advance but found small municipal loans carry high legal fees; staff is exploring LCOG and Business Oregon alternatives.
Nicole Chitten described recent wastewater-plant costs to the committee, saying solids removal left large volumes of waste in tanks that required professional removal. “...it was about 40,000 gallons. All the money actually has not been spent yet. $25,000 has been spent,” she said, describing work that remains and ongoing coordination with the contractor.
Chitten said staff needs to repay an interfund loan and discussed borrowing to cover repayment; Banner Bank indicated small municipal loans can incur $5,000–$10,000 in attorney fees, so staff have also contacted LCOG and Business Oregon to find lower-cost options. Members emphasized that some cleanup work remains, and the draft budget includes placeholder debt-service estimates based on a $45,000 loan at 6.5% for 10 years until a firm lending option is secured.
