Pella Chronicle

Local News

December 11, 2013

Long-term water supply plan discussed

(Continued)

The City’s long-term water supply plan involves a new Jordan Well, a new 3 million gallon per day (mgd) reverse osmosis treatment process (RO) and extensive improvements to our current lime softening water treatment plant.

Pella City Staff is proposing to utilize both cash reserves and a loan through the State Revolving Fund (SRF) to finance the City’s long-term water supply plan. At this time the current interest rate for an SRF loan is approximately two percent over a twenty year time period. In addition, if Council were to proceed with a loan through the SRF program, Pella would be able to secure an interest free loan for the planning and design work that is currently underway.

With the assistance of bond counsel, this resolution directs the City Council to proceed with the preparation of documents and proceedings as necessary to authorize the City’s participation in the Drinking Water State Revolving Fund Loan Program, to select a suitable date for final City Council authorization of the required Loan and Disbursement Agreement and issuance of the Note, and to take other actions as deemed necessary to permit the completion of a loan favorable to the City and acceptable to Council.

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