FINANCIAL_SERVICESAPPROVED

City of Milwaukie Council Regular Session Agenda Packet May 2026

Milwaukie Secures $6M State Loan for PFAS Water Project

Up to $6,000,000 at 3.83% interest, with up to $3,000,000 eligible for principal forgivenessCity of MilwaukieOREGON BUSINESS DEVELOPMENT DEPARTMENTMay 3, 2026

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Description

The City of Milwaukie is approving a financing contract with the Oregon Business Development Department’s Infrastructure Finance Authority for up to $6 million in Safe Drinking Water Revolving Loan Fund assistance to address PFAS contamination in its water system. The loan, at 3.83% interest with up to $3 million in principal forgiveness, will fund a raw water pipeline, treatment site preparation, and long-lead equipment for the water treatment plant.

Contract Details

Contract Amount

Up to $6,000,000 at 3.83% interest, with up to $3,000,000 eligible for principal forgiveness

Vendor

OREGON BUSINESS DEVELOPMENT DEPARTMENT

Agency

City of Milwaukie, OR

Contract Type

FINANCIAL_SERVICES

Document Date

May 3, 2026

Contract Term

Loan funds to be spent within 3 years; repayment amortized to 29 years after repayment commencement date (per financing contract)

Renewal Info

Single financing contract for SDWRLF assistance; up to 50% principal forgiveness contingent on timely project completion and compliance. Future SDWRLF loans for PFAS treatment are anticipated but would require separate applications and approvals.

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