Reno advances $50M state revolving fund loan for critical wastewater dewatering upgrade

Reno advances $50M state revolving fund loan for critical wastewater dewatering upgradeLeveraging low-interest state financing, the city aims to replace an aging dewatering facility that operations staff have flagged as their top infrastructure priority.

The Reno City Council unanimously approved a resolution of intent to apply for $50 million from the Nevada state revolving loan fund.

The funding will replace an existing 40-year-old dewatering building that compacts sewer waste for transport.

The project has been in the city's capital improvement plan for 15 years and is the number one priority for operations staff in Reno and Sparks.

By utilizing the state's drawdown program, the city expects to secure an interest rate significantly lower than market bonds, citing a 2.47% rate achieved on a previous water project.

The Reno City Council has authorized a resolution of intent to apply for $50 million in state revolving loan funds to replace its aging sewer dewatering facility. The unanimous approval allows the city to seek financing through the Nevada Department of Environmental Protection and the Department of Conservation and Natural Resources to advance a project that has been stalled in the capital improvement plan for 15 years. The existing dewatering building is over 40 years old. According to John Simpson from Utility Services, the facility is essential for managing waste products produced during sewer treatment. The facility extracts water from the waste material, making it compact and easier to transport to an off-site waste facility. Simpson noted that operations staff for the cities of Reno and Sparks have listed the replacement as the number one item needed at the treatment plant. Financing the $50 million project through the state revolving fund allows Reno to avoid issuing open-market bonds, which would force the unseen wastewater infrastructure to compete for funding against more visible public safety or recreational projects. Director of Finance Vicki Van Buren emphasized the financial advantages of the state program, which operates on a drawdown basis, meaning the city will not begin paying for the loan until the funds are actually spent. Van Buren noted that the city utilized a similar process for its advanced purified water facility, securing an interest rate of 2.47%. "You can't go out on the market and get anything like that," Van Buren told the council. "It's a great value for the city. It really secures those funds in a way that we get the best bang for the buck for what we're doing."