Westminster should use a mix of grants, debt refinancing and cash to help pay for a new water treatment plant, councilors were told May 15.
Westminster city staff presented to the council how they plan to fund the newly approved water treatment plant at the May 15 study session meeting.
The water rate structure council approved in 2022 allows for the construction of the plant.
The plan accounts for $196 million with up to $20 million more if the council decides to include ozone treatment. The ozone treatment will be decided in 2024 when council makes the final decision to authorize construction.
Interim Public Works Director Sarah Borgers told councilors that 3% will come from grants, 16% from cash, 27% from municipal revenue bonds, 27% from State Revolving Fund Loan. For the last 27%, they are seeking approval from the United States Infrastructure Finance and Innovation Act Loan.
The State Revolving Fund Loan offers a rate 20% below municipal market interest rates. The loan may also offer principal forgiveness.
The price of the treatment plant can change over the next few years. For 2024, that cost could go down 10% or increase 25% or more. In 2027, the price will likely be accurate with a -1%-3% threshold for change, Borgers said.
City Councilor Sarah Nurmela asked if there are opportunities to make the building net-zero and cheap to operate. Borgers said the city is looking to make the project Envision certified to make the project sustainable, resilient and equitable.
Design and site prep work is scheduled to start in 2024 and construction is expected to begin in 2025. The project will be complete by 2028.