La Junta adopts up to $14.96 million for water system work
The authorization covers water-distribution improvements, including lead-service-line work, with repayment from Water Enterprise revenues and pledged property.
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La Junta’s City Council adopted Ordinance 1710 on Nov. 16, authorizing up to $14,961,450 in Water Enterprise borrowing for water-distribution improvements, including lead-service-line work. Repayment will come from Water Enterprise revenues and pledged property; the ordinance says the obligation is not city debt.
The financing includes 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. The ordinance caps the interest rate at 1.75% and the repayment term at 30 years, with authorized city officers setting specific terms within those limits.
The council passed the measure on first reading Nov. 2 by a 6-0 vote, with Council Member Lisa Pantoya absent, the meeting minutes show.
The ordinance does not identify which streets or properties will receive work, how many service lines could be affected or when construction will occur.