FINANCIAL_SERVICESPENDING

Gardiner City Council Agenda Item Information Sheet Feb 2026

USDA Rural Development loan and grant for WWTP upgrades

Up to $2,740,000 (RD loan) plus $482,000 (15% RD grant); potential reduced loan of $1,318,000 if CDS funding of $1,422,000 is securedCity of GardinerUSDA/RURAL DEVELOPMENTFebruary 4, 2026

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Description

Gardiner City Council is asked to authorize the Interim City Manager to execute obligation documents with USDA/Rural Development for a loan and grant package supporting $4.22 million in Phase 2 WasteWater Treatment Plant upgrades. The financing includes an RD grant and a 28-year RD loan, with potential CDS funding to reduce the loan amount, and is contingent on funding availability.

Contract Details

Contract Amount

Up to $2,740,000 (RD loan) plus $482,000 (15% RD grant); potential reduced loan of $1,318,000 if CDS funding of $1,422,000 is secured

Vendor

USDA/RURAL DEVELOPMENT

Agency

City of Gardiner, ME

Contract Type

FINANCIAL_SERVICES

Document Date

February 4, 2026

Contract Term

28 year loan - approximately $160,000/year; potentially 28 year loan - approximately $77,000/year with CDS funding

Renewal Info

Single 28-year loan obligation rather than a renewable contract; no renewal terms stated. Loan/grant award is contingent on USDA Rural Development funding availability and potential congressional CDS funding that may reduce the loan principal.