The Soldotna City Council passed an ordinance that would increase revenues and appropriations by $60,000 to fund forgivable loans from the Alaska Department of Environmental Conservation. The city previously approved two resolutions in July, which would allow the City Manager to apply for loans from the Alaska Drinking Water and Alaska Clean Water Funds in the amount of $30,000 each for a total of $60,000 to perform a water and sewer rate study.
Acting City Manager Kyle Kornelis told council:
“The city applied for state revolving fund loans through the Alaska Department of Environmental Conservation. The SRF Fund is a federal state funded partnership. The city scored high enough to be placed on the list of sustainable infrastructure planning programs. As such, the loan is 100% forgivable. The principal loan amount is 100% forgivable. After appropriation if council passes the ordinance, we would solicit for professional services to conduct that rate study and bring back a resolution for contract authorization. The last rate study we conducted was in 2015.”
Kornelis was asked if Soldotna being in good financial standing gives the city an advantage to be granted forgivable loans:
“I certainly think that some aspect of that is certainly true in the administrative capability of an organization to handle state and federal grants insomuch as the paperwork or complexities involved, however many of these programs are intended to assist organizations that particularly need funding sources to remedy certain aspects of critical infrastructure or critical services that are important to deliver to communities and residents. Drinking water and wastewater is certainly one that is eligible for that and is highly promoted through the federal and state partnerships. The state revolving fund is a huge program nationwide that specifically pumps low interest loans into all sorts of communities.”
Ordinance 2022-003 unanimously passed the Soldotna City Council.