Soldotna looks to apply for loan for wastewater treatment plant

The Soldotna City Council has authorized the City Manager Mark Dixson to apply for a loan for $3,000,000 to finance construction of the 2017 wastewater treatment plant improvement project.

In conjuncton, the council also increased estimated revenues and appropriations in the utility system capital improvement fund by no more that $3,000,000, anticipating the funds from the Alaska Department of Environmental Conservation.

The loan is part of the Alaska Clean Water Fund and would cover the financing of the 2017 Wastewater Treatment Plant Improvement Project, according to Soldotna Public Works Director Kyle Kornelis.

ADVERTISEMENT
0 seconds of 0 secondsVolume 0%
Press shift question mark to access a list of keyboard shortcuts
00:00
00:00
00:00
 

“This consists of several projects,” Kornelis said. “The appropriation will allow us to complete several imporatant projects (at the wastewater treatmenat plant).”

The different components of the overall improvement project include new blower motors, new motor control cabinets, repairs to yard piping that is currently leaking, repairs to the control building, a new roof on one of the buildings and several code compliance upgrades to buildings throughout the treatment plants, Kornelis said.

“The loan program is favorable for a number of reasons, incluidng excellent interest rates,” Kornelis said.

The program also provides flexibility, such as being able to pay off the loan early, variable loan terms and reimbursement for existing and prior expenditures.

According to the Department of Environmental Conservation’s loan program overview, the loans can finance up to 100 percent of a project’s costs for planning, designing and constructing publicly owned facilities. For a contract term of five to 20 years, Soldotna would see a 1.5 percent finance charge assessed starting one year after the first payment to the city. If the contract term is less than five years, Soldotna would see a 1 percent finance charge on the same timeline.

The application process begins in January 2018, according to city documents, and if accepted, the funds would become available between June and September of 2018.

“In the history of the loan program, they have never not been able to provide financing to a loan applicant,” Kornelis said. “So, the prognosis is very good. … The sole purpose of this loan is a project of our type. … It fits the mold perfectly so we feel there is very little risk that we will not be able to get the loan.”

If, though, the city is not approved for the loan Soldotna would need to find alternate financing to pay for the expenditures.

The Soldotna wastewater treatment plant collects waste water from about 29 miles of sewer lines, serves about 4,000 people and is designed for a capacity of 1.2 million gallons per day with a maximum flow of 1.08 millions gallon per day.

In 2001, Soldotna updated its wastewater facilities master plan, which recommended upgrades that were installed in 2006.

Reach Kat Sorenesn at kat.sorensen@peninsulaclarion.com

More in News

Sen. Jesse Bjorkman, R-Nikiski, speaks at a town hall meeting in the Moose Pass Sportsman’s Club in Moose Pass, Alaska, on Friday, Feb. 28, 2025. (Jake Dye/Peninsula Clarion)
Insurance authorization bill sponsored by Bjorkman, Ruffidge becomes law

The bill requires insurance companies and health care providers to meet new deadlines for authorizing requests for care.

A map of the Johnson Tract Mine exploration project. Photo courtesy of the Center for Biological Diversity
Inletkeeper, partners file lawsuit against Cook Inlet gold mine

The Johnson Tract Mine is located on CIRI-owned lands inside Lake Clark National Park.

A sockeye salmon is carried from the waters of Cook Inlet on North Kenai Beach in Kenai, Alaska, during the first day of the Kenai River personal use dipnet fishery on Thursday, July 10, 2025. (Jake Dye/Peninsula Clarion)
Kenai River dipnet fishery open 24 hours beginning Friday night

Per fish counts available from the department, 471,000 sockeye have been counted so far this year — with 108,000 counted on Wednesday alone.

Attorneys Eric Derleth and Dan Strigle speak to Superior Court Judge Kelly Lawson during the opening arguments of State of Alaska v. Nathan Erfurth at the Kenai Courthouse in Kenai, Alaska, on Wednesday, July 16, 2025. (Jake Dye/Peninsula Clarion)
Opening arguments offered in Erfurth trial

The trial is set to continue for around two weeks, into early August.

Evacuees in Seward, Alaska, walk along Adams Street following a tsunami warning on Wednesday, July 16, 2025. (Photo by Jeff Helminiak/Peninsula Clarion)
Tsunami warning canceled following 7.3 earthquake near Sand Point

An all clear was issued for Kachemak Bay communities at 1:48 p.m. by the Kenai Peninsula Borough Office of Emergency Management.

The Ninilchik River on May 18, 2019, in Ninilchik, Alaska. (Photo by Michael Armstrong/Homer News)
Ninilchik River to remain closed to king salmon fishing

It was an “error in regulation” that would have opened the Ninilchik River to king salmon fishing on Wednesday.

A table used by parties to a case sits empty in Courtroom 4 of the Kenai Courthouse in Kenai, Alaska, on Wednesday, Dec. 11, 2024. (Jake Dye/Peninsula Clarion)
Nikiski woman sentenced to 4 years in prison for 2023 drug death

Lawana Barker was sentenced for her role in the 2023 death of Michael Rodgers.

Alaska State Troopers logo.
Seward resident arrested after Monday night police pursuit

Troopers say she led them on a high-speed chase on Kalifornsky Beach Road for around 7 miles.

Most Read

You're browsing in private mode.
Please sign in or subscribe to continue reading articles in this mode.

Peninsula Clarion relies on subscription revenue to provide local content for our readers.

Subscribe

Already a subscriber? Please sign in