Watertown City Council approve loans & grants for their new wastewater treatment facility

WATERTOWN, S.D.(KXLG)- The City Council was faced with deciding to enter into an over nineteen million dollar loan for the new Wastewater Treatment Facility, which also includes some state matching funds and grants.

City Engineer Justin Peterson explains.

Councilman Danforth asked Wastewater and Solid Waste Supervisor Mike Boerger for a description.

Councilman Vilhauer confirmed that Municipal Utilities has some big projects in the works that are separate from what they are discussing tonight.

The Council then approved it unanimously.

Now that the City Council has officially approved entering into a 30 year loan agreement for over nineteen million dollars, a user surcharge increase must occur.

Finance Officer Kristen Bobzien explains more.

City Engineer Justin Peterson said it will end up in the “four dollar range.”

Councilman Schutte referenced a previous graphic.

The Council approved the resolution unanimously.

Once the project funding and surcharge for the new Wastewater Facility are approved, it has to be designed and sent out to bid. The Council looked at approving a professional services agreement with HDR for over $3.7 million.

City Engineer Justin Peterson explains.

Councilman Vilhauer wanted to confirm that the over $37 million project included this agreement amount, and Peterson confirmed it does.

Councilman Danforth also confirmed that this is a “not to exceed number” so regardless of inflation or any other increases it cannot exceed the approved amount.

It was then approved unanimously by the Council.