Burlington closes $4.8 million in wastewater loans as larger financing advances
The state authority approved a $13 million financing structure, but the city says an $8.5 million leveraged loan still depends on bonding and the project design remains under state review.
Burlington has closed $4.8 million in loans for its wastewater-treatment project, while an $8.5 million leveraged loan remains pending and the project design is under state review. City Administrator Jim Keehne’s report in the Sept. 28 City Council packet says the city closed a $4.5 million loan and a separate $300,000 design-and-engineering loan on Aug. 5. The report says the leveraged loan was expected to be available in November once bonding is secured.
The Colorado Water Resources and Power Development Authority’s March 6 meeting minutes record approval of a $13 million funding structure, including $8.5 million in leveraged financing, $3 million in direct loans and $1.5 million in principal forgiveness. The authority also authorized negotiations on the leveraged loan; that approval did not mean the full financing had closed.
Keehne’s report says the project design was with the Colorado Department of Public Health and Environment for review, and the city hoped to receive approval before mid-October. The State Revolving Fund would prepare a final loan agreement, and bond counsel would prepare documents needed to release funds. The city’s hoped-for construction start was October or November 2026, after those steps.
The Sept. 28 council agenda schedules consideration of the mayor’s signature on an engagement letter with bond counsel Butler Snow. The letter estimates an $18,000 fee, payable at closing if the financing proceeds. The city report does not explain how the $4.8 million in closed loans fits within the authority-approved $13 million structure.