Council briefed on $10 million low-interest loan request for water treatment plant expansion

Public Works staff presented a request to enter a low-interest public infrastructure loan agreement for $10,000,000 to fund an expansion of Arlington's water treatment plant.

The presenter said the city's current filtration plant cannot process all of the water rights the city holds and that the expansion is needed to match capacity to those rights. The project is in the final stages of design — the presenter said staff expect 90% design and hope to advertise for bids in September — and the $10 million loan would fund approximately 90% of construction costs. ‘‘This $10,000,000 loan that we're getting will be the crux and fund approximately 90% of the construction,’’ the presenter said.

Staff explained they pursued grant funding first but were unsuccessful because available grants are often targeted to jurisdictions with lower median household incomes; the presenter said the city tried multiple grant avenues before returning to a low-interest state revolving fund loan. Council members thanked staff for pursuing outside funding and sought clarity that the proposal is a loan, not a grant; staff confirmed it is a low-interest loan from a state-managed program.

Council expressed interest in finalizing the agreement promptly because pending legislative changes might reduce future funding availability. No formal council action on the loan was recorded during this meeting; staff said they want to execute agreements as quickly as possible.