Usually the Kankakee River Metropolitan Agency funds capital improvements, at least in part, through Illinois' revolving loan program. But faced with failing equipment, there wasn't time to go through an application process that can take up to two years without a guarantee of success.
Outside Finance Director Larry Ohm would've liked the payback period to more closely approximate the equipment's anticipated service life of 15 to 20 years. But, he says, seven years was preferable to paying for the pump upfront or delaying replacement until longer-term borrowing could be arranged.
The vendor's analysis of agency financials took about a month, and the deal probably will have been executed by the time you read this.
WHO: Kankakee River Metropolitan Agency; Kankakee, Ill.
SIZE: 60,000 wastewater customers in four communities
EQUIPMENT: Siemens IntraLift enclosed screw pump for 25-mgd treatment plant
TERMS: 7 years at 4.5%
VENDOR: Siemens Water Technologies