Meridian City Council on May 20 approved a resolution authorizing the mayor to sign an application for a $3,971,930 State Revolving Loan Fund loan to support Phase 2 of a freshwater well project.

City staff told the council the action is to submit the loan application and does not finalize a contract; the final loan terms and any agreement would return to the council for approval later in the year.

“This is just the loan application. It’s due June, I think. It’s strictly to, give the mayor the permission to sign the application. We’ll find out in November October, November what the actual agreement is,” a staff member told the council. The staff member said the request is for about $3.9 million, the program is the state revolving loan fund, the expected interest rate is about 2% for 20 years, and “there will be some principal forgiveness right now sitting at $500,000.”

Council members asked procedural questions; staff confirmed the council would see the final loan agreement if the application proceeds to approval by the state. The staff presentation identified construction, engineering, consulting and related costs as eligible uses for the loan proceeds.

The council voted to approve the resolution authorizing the mayor to sign the loan application; the final agreement and any disbursement terms will return to the council for consideration when the state completes its review.

City staff said the application is being processed through the Mississippi State Department of Health program that administers the state revolving loan fund for drinking water projects. The council was told the application deadline is approaching and that notice of eligibility or an invitation to submit a full application is expected in the fall.

Next steps: staff will submit the application, monitor the state's review schedule and return to the council with any agreement and the exact loan terms for formal acceptance and implementation planning.