The City Council on Wednesday accepted a partial settlement with the Bainbridge Ratepayers Alliance that will allow the city to acquire a loan to complete the Winslow sewer plant.
The settlement, which puts to rest the most contentious element of a suit filed by the alliance, will also lead to the cancellation of a surcharge that would have more than doubled sewer rates, city officials said.
“This is that rare thing – a win all the way around,” Interim City Manager Lee Walton said in a statement.
The alliance’s lawsuit, which challenges the city’s use of utility funds, deterred loan providers from working with the city.
In the settlement, the alliance agrees to not challenge a $1.9 million loan provided by Cashmere Valley Bank. The city, for its part, agrees to use the loan only for the sewer project, pay the alliance’s legal fees and repeal the surcharge.
A hearing on repealing the surcharge is scheduled for Jan. 27.