The Knoxville City Council approved a resolution to set a date for a public hearing on a proposal to enter into a Sewer Revenue Loan and Disbursement Agreement and to borrow money in principal not to exceed $5,970,000. Knoxville City Manager Heather Ussery spoke to KNIA/KRLS News about the agreement.

“This is the first step in entering into a loan agreement for the financing of our 2022 Water Reclamation facilities improvement project. These are improvements required by the DNR. Last year we did a loan that is zero percent interest that helped fund the engineering costs for the project. This is now the first step in the construction funding of the application through the Iowa Finance Authority. This type of sewer revenue funding is set up before projects like this with a very low-interest rate.”

The public hearing is scheduled for the next council meeting which is May 2 AT 6:15 pm