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DPW seeks $1.3 million loan to close budget gap on wastewater aeration upgrade
Summary
Director Arnold told the committee the wastewater aeration upgrade has $4.6 million in grants but design/budgeting now estimate the project at about $5.9 million, leaving a $1.3 million shortfall; the department will bring a loan order to Finance to close the gap.
Director Arnold told the committee the wastewater aeration upgrade at the city's plant has received approximately $4.6 million in grant funds, but the design estimate showed a budget shortfall and the total project estimate is now about $5.9 million. "We've acquired $4,600,000 in grama grants for upgrades at the wastewater plant for our aeration system. However, when they did the design and they came up with a budget error number, it's about 5,900,000. So we're $1,300,000 short," Arnold said.
He said the department will bring a loan order (to be financed through the sewer system) to the Finance Committee to cover the difference; committee members were told this loan order will appear on the finance agenda so the council can consider financing options. Arnold characterized the item as a loan order to be repaid through sewer system financing rather than a request for general fund dollars.
Staff did not provide further financing details at the committee meeting; the Finance Committee will receive the loan order and may discuss repayment terms and sources.
