Burlington reports closing $4.8 million in wastewater loans; other financing, awards pending
The reported closing covers a $4.5 million construction loan and a fully forgivable $300,000 engineering loan, while the broader financing package remains unreconciled.
Burlington reported closing Aug. 5 on $4.8 million in State Revolving Fund loans for a planned wastewater treatment facility, while the project’s construction award and a related state grant contract remained pending, the city administrator’s report in the Aug. 10 City Council agenda packet says. The report is retrospective, but the executed loan documents and closing statement were not available for review.
The reported closing includes a $4.5 million construction loan at 2.5% interest, repayable over 20 years, and a $300,000 design-and-engineering loan whose principal is fully forgivable if used for eligible work, including work already performed.
The report describes the broader SRF package as $13 million but lists $4.5 million in direct loans, $1.5 million in principal forgiveness and an $8.5 million leveraged loan — figures that total $14.5 million. It does not explain the discrepancy. The leveraged loan is described as carrying 4% interest over 20 years and expected to become available in November once bonding could be secured; the report does not say it had closed or been drawn as of Aug. 5.
The report gives no definitive projected total cost for the wastewater project. It says design was 90% complete, estimates included a 20% contingency and a construction-manager-at-risk process could reduce that contingency by at least 10% as costs are refined. Those figures do not establish a final project budget.
The project would replace Burlington’s evaporative lagoon system with a mechanical facility using a sequential batch reactor. The August schedule lists the construction CMAR award as “awaiting state award” and construction as beginning “ASAP.” The report says the award could not be made until the state executed a pending $382,486 Department of Local Affairs grant contract. Burlington was preparing the documents and hoped to complete execution by the end of August. State funds spent before the contract was executed would not be eligible for reimbursement, the report says.
The available record does not identify a completed design or construction CMAR award, an award amount or a notice to proceed. Burlington also was pursuing potential federal support: a $700,000 Community Project Funding award and a $3 million Congressional Directed Spending award, neither of which had been awarded and neither of which would be available until 2027 if approved.
The city’s report leaves the SRF package figures, final loan documents and terms, DOLA contract status and project awards unresolved.