Westminster settles on how to fund new water treatment plant

BY LUKE ZARZECKI LZARZECKI@COLORADOCOMMUNITYMEDIA.COM

Westminster should use a mix of grants, debt re nancing and cash to help pay for a new water treatment plant, councilors were told May 15.

Westminster city sta presented to the council how they plan to fund the newly approved water treatment plant at the May 15 study session meeting.

e water rate structure council approved in 2022 allows for the con- struction of the plant. e plan accounts for $196 million with up to $20 million more if the council decides to include ozone treatment. e ozone treatment will be decided in 2024 when the council makes the nal decision to authorize construction.

Interim Public Works Director Sarah Borgers told councilors that 3% will come from grants, 16% from cash, 27% from municipal revenue bonds, and 27% from State Revolving Fund Loan. For the last 27%, they are seeking approval from the United States Infrastructure Finance and Innovation Act Loan. e State Revolving Fund Loan o ers a rate 20% below municipal market interest rates. e loan may also o er principal forgiveness. e price of the treatment plant can change over the next few years. For 2024, that cost could go down 10% or increase 25% or more. In 2027, the price will likely be accurate with a -1%-3% threshold for change, Borgers said.

City Councilor Sarah Nurmela asked if there are opportunities to make the building net-zero and cheap to operate. Borgers said the city is looking to make the project Envision certi ed to make the project sustainable, resilient and equitable.

Design and site prep work is scheduled to start in 2024 and construction is expected to begin in 2025. e project will be complete by 2028.