La Junta council to consider up to $14.96 million in water-system financing
A proposed ordinance would fund water-distribution improvements, including lead service-line work, through repayable loans and principal forgiveness.
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La Junta’s City Council is scheduled to consider the first reading of an ordinance Nov. 2 that would authorize up to $14.96 million in financing for water-distribution improvements, including lead service-line work. The council agenda lists Ordinance 1710 for action at the 6 p.m. meeting.
The proposed ordinance combines about $4.72 million in repayable lead-service-line funding, a $4 million repayable base loan and about $6.25 million in principal forgiveness for lead-service-line work. It sets a maximum interest rate of 1.75% and a repayment term of no more than 30 years.
The ordinance pledges Water Enterprise property and revenues for repayment and says the financing would not constitute city debt. It does not identify which streets or properties would receive work, how many service lines could be affected or when construction would occur.