San Diego secures $27M Clean Water SRF loan for Chollas green infrastructure project

San Diego secures $27M Clean Water SRF loan for Chollas green infrastructure projectThe City Council has approved low-interest state revolving fund financing to advance critical storm drain improvements, while also greenlighting a major materials contract to support ongoing water, sewer, and stormwater trench restorations.

The city authorized a CWSRF loan not-to-exceed $27 million for the Chollas Green Infrastructure and Storm Drain Improvements.

The 30-year loan carries a 2.0% interest rate, with an estimated $975,000 in annual debt service paid by the General Fund.

Council also approved a $57.1 million, five-year contract with JEB Sand and Gravel for trench restoration fill, dedicating $27.6 million from the stormwater budget.

Both measures were approved unanimously on the May 12 consent agenda.

The San Diego City Council unanimously approved an ordinance on May 12, 2026, authorizing a Clean Water State Revolving Fund (CWSRF) loan to back the Chollas Green Infrastructure and Storm Drain Improvements project. The financing package is authorized for an amount not to exceed $27 million. Based on an estimated utilized financing amount of $22 million, the city secured a 30-year level debt repayment term at a 2.0% interest rate. Annual debt service is projected at approximately $975,000, which will be covered by the city's General Fund. The investment drew brief praise during public comment, with a resident thanking the council for supporting "green infrastructure and the storm drain improvements." In a parallel move highlighting the city's ongoing pipeline maintenance and underground asset management, the council authorized a five-year, $57.1 million agreement with Runts Trucking Inc., doing business as JEB Sand and Gravel, for as-needed trench restoration backfill supplies. The materials contract will heavily support municipal water and watershed operations. The General Fund Stormwater budget will cover the largest portion of the contract at $27.6 million. Additionally, the Muni Sewer Revenue and Water Utility Operating funds will contribute $5.5 million and $5 million, respectively, with the remainder funded by the transportation department. Both items were adopted without opposition as part of the council's consent agenda.