The Preston City Council set Aug. 18 as the closing date for the USDA interim loan that will replace an existing DEQ loan for the city's wastewater treatment plant and authorized the mayor to sign pertinent loan documents after legal review. The council placed the date on the record at the meeting and recorded a motion to formalize the closing timeline.

City staff engineer Colter Hollingshead told the council the plant is approximately 80% complete and that "there is adequate funding available to complete it." He explained the city needs to set a loan transfer date so USDA can pay DEQ and take over the loan per DEQ requirements; one document cited a requirement that the DEQ loan be closed by Aug. 31. Hollingshead and staff said Aug. 18 appeared acceptable to both USDA and DEQ based on prior communications.

Council discussion noted the attorney must review loan documents before any signatures. Councilmember (unnamed) moved to set the closing date for Aug. 18; the motion was amended on the record to instruct the mayor to sign pertinent documents "after review" by legal counsel. The council approved the motion by voice vote.

Officials emphasized that the attorney would review the loan paperwork before execution and that setting the date is an administrative act to satisfy the DEQ deadline and allow USDA to assume the loan arrangement.

The council recorded the vote in favor. Staff said the conversion from a DEQ loan to a USDA interim loan is part of the financing plan to complete the wastewater treatment plant.