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Council accepts DEC loans for sewer phase and wastewater disinfection upgrades required by new permit
Summary
Council approved loan agreements from the Alaska Department of Environmental Conservation to fund the next phase of a water/street sewer project and required wastewater treatment plant disinfection improvements tied to a new EPA/DEC discharge permit; staff said existing rate structures and a five‑year plan will cover debt service.
The council approved a resolution accepting loan agreements to fund a water‑street sewer Phase B project and wastewater treatment plant disinfection improvements required by a new EPA/DEC discharge permit. Public works director Seth Brachy described two components: the sewer work extending from the tunnel toward Hopkins Alley and disinfection improvements at the wastewater plant tied to the new discharge permit.
Finance staff said the city's rate structure and five‑year plan are expected to cover debt service for the work; one of the loans features a $1,000,000 subsidy that reduces the city's debt service on that portion. Council approved the resolution after staff described the project scope and financing plan.
