LANGLEY: City considers loan opportunity to fund infrastructure projects (SWR)

Luisa Loi reports for the South Whidbey Record from the Langley City Council meeting of Mon., Sep. 18, 2023.

The City of Langley is eyeing an opportunity to accept a low interest loan through the Public Works Board that would help fund the Langley Infrastructure Project, which comprises 14 individual projects that would improve the city’s drinking water, storm water and sewer systems.

Public Works Director Randi Perry applied for the loan on July 7, 2023. On Sept. 8, the list of awards was published, revealing that Langley’s application scored 84.5 points, being the 20th of 61 applicants to be awarded funding out of a total of 85 projects.

The loan would be repaid in 20 years at a 1.72% interest rate. According to City Administrator Mark Rentfrow, it’s a remarkably low rate.

“That is far and away better than any commercial interest rate,” he said in an interview.

They Said It

During the meeting, Mayor Scott Chaplin said the city needs to figure out how to pay back the loan, an issue that Councilmember Gail Fleming found concerning, though she said she would like to see more information before making a decision. Councilmember Thomas Gill shared a similar opinion.

“I don’t think there’s any way without a major change to the way the city operates that we can hope to repay this in any sort of reasonable timeframe,” he said.

Councilmember Rhonda Salerno said there needs to be public outreach before they take a loan.

“I’m not sure that our public wants us to go into debt for 20 years when we’re going to need to use these loans when it comes to our sewer treatment facility,” she said. “There is plenty of money … in the bipartisan infrastructure bill to cover these costs and we haven’t spent any time on that.”

Councilmember Harolynne Bobis said she is worried that they might miss this opportunity. To Perry, further postponing infrastructure work is a risk.

“All of the things that are in this project need to be done and have been deferred for many years,” she said. “We’ve already kicked the can quite a bit down the road and we are definitely feeling the effects of it.”

On the Ballot in November 2023