State Revolving Fund Agreement Executed
The City has recently executed an agreement with the California State Water Resources Control Board to receive $127,068,522 in funding from the Clean Water State Revolving Fund (SRF). The funding provided by the SRF includes an interest rate of 1.7% and includes $4M in principal loan forgiveness. The rate of 1.7% is lower than traditional bonds (typically 3%+) the City receives and will provide potential savings in financing costs of approximately $20M over the 30-year repayment period. Reimbursement requests can be retroactively provided for as of December 9, 2016. The funding will provide for projects associated with the Headworks and Primary Treatment facilities, which takes the raw sewage from the conveyance pipelines and removes solids and sediments before the secondary treatment process.