A loan for more than $11 million is on its way to the City of Hermiston.
The Hermiston City Council approved a resolution Monday to enter into a loan agreement Monday with the Oregon Department of Environmental Quality for $11.41 million to go toward the construction of the citys recycled water project.
The new loan, at an interest rate of 2.65 percent, joins a $4 million DEQ loan the city received in June.
We were hopeful for a second round of low-interest loans to help fund the project, and Im very, very pleased to announce that this is $11.4 million at an interest rate even lower than the first (loan), City Manager Ed Brookshier said. With the $4 million weve already received, this brings our DEQ loan package right at $15 million on a $25 million project.
The project will transform the citys current 30-year-old wastewater facility into the Hermiston Recycled Water Plant, a sustainable facility capable of discharging high-quality water for irrigation while meeting current and projected regulations.
(DEQ has) really come to help us with this project, Brookshier said. We really appreciate it.
Also during the meeting:
The council unanimously approved Resolution 1882 to establish a new health reimbursement arragement/voluntary employees beneficiary association plan. The resolution changes health insurance for all non-police employees from a 80-20 percent plan to a 90-10 percent plan, effective in January.
This is part of our movement to a less expensive plan for our employees, Brookshier said. The estimated savings to the city is 17 percent of health insurance costs.
Rick Stoddard, of Barnett and Moro, presented the citys 2009-10 Audit Report, and said the city earned a clean report from the accounting firm.
City council members unanimously authorized a non-binding memorandum concerning the establishment of an Eastern Oregon Trade and Event Center.