Debt sale, loan cover roughly $30 million needed for East Grove Treatment Facility project

MIDDLEBORO — Funds to ensure water drawn from the East Grove Well will be safe and drinkable were secured through a new loan coupled with the sale of bonds and notes, both finalized at the Select Board meeting Monday.

The town sold $3 million of bonds and $12 million of notes after putting both on the market Sept. 10, bringing in a combined $15 million. These funds, along with another $15 million from a state loan will temporarily finance the project until a finalized no-interest loan is approved — a huge savings for taxpayers, town officials said.

“The project itself is of the utmost importance,” said Select Board Chairman Mark Germain. “Our goal is to reduce our PFAS levels to non-detect, and that’s for everybody who’s in town who has water. It's an amazing project that we are undertaking, and the support that we have from SRF [Clean Water State Revolving Fund] funding is saving taxpayer money.”

Town Manager James McGrail said it took R. Renee Fernandes, Middleboro’s treasurer and collector, at least four months to prepare for this sale.

Fernandes said just after the bonds and notes were sold, the Massachusetts Clean Water Trust, a state agency for water improvement through low- or no-interest loans to municipalities, approved an interim $15 million loan. On top of savings from the lack of interest, at least 11% of the principal will be forgiven, Germain said.

The debt sale will supplement the interim loan until the loan is finalized.

Once the permanent interest-free loan is finalized, it will increase to cover the complete $33 million needed to construct the East Grove Treatment Facility. This facility will replace the previous water treatment plant at 55 East Grove St. to combat the high levels of PFAS — also known as forever chemicals — that have been found at the site.

The loan is anticipated to close in 2027, meaning the town will begin repayments in 2028.

Fernandes said once the new treatment plant was approved at a special Town Meeting in Oct. 2024, her job was to secure financing for the project. She said Massachusetts Clean Water Trust was chosen for its competitive rates.

She said the process of obtaining the loan included working with the Department of Public Works, the Department of Environmental Protection and the Town Manager.

“It’s a huge process altogether, and I really take no credit for it,” Fernandes said. “The testament is to the guys at DPW that saw the need for a project of this size and knew where to go to get the best deal. ”

She said each year the trust offers an opportunity to present a project and explain why it should be funded, and it selected the water treatment plant because of the Department of Public Works’ presentation.

Fernandes said the project ultimately received the funds because of its impact on the environment and Middleboro residents.