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Kingsport authorizes SRF loans and property purchase for major sewer projects totaling millions
Summary
The board approved state revolving fund financing for the Pendragon lift station (~$2.7M with principal forgiveness potential) and $6M for Reedy Creek trunk replacement (with $1.8M potential forgiveness), and approved buying a property for $7,500 to support Reedy Creek construction.
The board authorized two Clean Water State Revolving Fund (SRF) financing actions aimed at major sewer infrastructure work. Members approved financing for the Pendragon Sewer lift station replacement—a roughly $2.7 million package with about $1,080,000 identified as potentially subject to principal forgiveness and a 20‑year fixed interest rate of 1.97%—and authorized a separate $6 million SRF loan for the Reedy Creek trunk sewer replacement with about $1.8 million subject to principal forgiveness and the same 20‑year 1.97% rate.
Separately, the board approved acquisition of a parcel on Ferguson Street for $7,500 to enable phase 2 of the Reedy Creek trunk project; staff said ownership and disposition will be evaluated after construction (city may retain or surplus the parcel). City officials noted substantial annual capital needs for water/wastewater infrastructure and said pursuing grant/forgiveness opportunities and SRF terms helps minimize rate impacts for customers. Members asked staff to quantify how much external funding (grants/forgiveness) reduces annual rate pressures; staff agreed to prepare that information for a future session.
