Sioux City advances $7m DWSRF financing for Highway 75 water-main upsize

Sioux City advances $7m DWSRF financing for Highway 75 water-main upsizeSioux City Council has authorised further proceedings for up to $7 million of Water Revenue Capital Loan Notes, moving the Highway 75 Water Main Upsize Project toward state revolving-fund financing. Council was told the borrowing can be used only for that project and that funds will be drawn as required.

Council approved proceedings for a Loan and Disbursement Agreement with the Iowa Finance Authority and issuance of up to $7 million in Water Revenue Capital Loan Notes.

The notes are intended to finance the Highway 75 Water Main Upsize Project through the Drinking Water State Revolving Fund Loan Program.

The measure passed 4-0 on September 28, with Mayor Robert E. Scott absent.

Staff will now work with the Iowa Finance Authority and bond counsel on final loan documents for subsequent council approval.

Sioux City Council has taken the next formal step toward securing up to $7 million of state revolving-fund financing for the Highway 75 Water Main Upsize Project. Following a public hearing on September 28, the council voted 4-0 to institute proceedings for a Loan and Disbursement Agreement with the Iowa Finance Authority (IFA) and the issuance of not-to-exceed $7 million in Water Revenue Capital Loan Notes. Mayor Robert E. Scott was absent. The financing is to be pursued through Iowa’s Drinking Water State Revolving Fund Loan Program. The notes would evidence Sioux City’s obligations under the loan agreement and provide capital-project cash flow for water-utility works associated with the Highway 75 main upsize. During the hearing, a council member asked whether the $7 million could be used for any purpose other than the Highway 75 project. The City Manager said it could not, adding that the city would draw loan proceeds only as they were used. The resolution also records the council’s acceptance of the terms and disclosures of the DWSRF programme. It permits water-fund money to be advanced for eligible capital expenditures and subsequently reimbursed from note proceeds, subject to specified timing provisions. The vote does not complete the borrowing. Staff will work with the IFA and bond counsel to prepare the final documents required for council approval, including the construction loan needed to complete the improvements.