Grace Kirchner, Leader Correspondent
The Clintonville Common Council recently voted unanimously to support interim City Administrator Chuck Kell’s proposal to seek a Rural Development grant and loan to help pay for extensive upgrades to the city’s wastewater treatment plant.
The application is due April 1.
Kell told the Common Council on March 16 that if the city invests $10 million in the project, it could obtain a grant of $2.5 million to $2.8 million from the Rural Development agency that would not have to be repaid.
Residential customers now pay $27.60 per month, based on usage of 4,000 gallons of water per month.
If the city uses the Rural Development loan and grant program, the rate would increase to about $29.33 per month for a $10 million project. The loan portion of the funding would be for 40 years, which Kell said was a concern.
With the use of grant money, the monthly increase would be $1.73 for residential customers, Kell said. A shorter payback period would increase the monthly rates.
In contrast, if the city went through the Department of Natural Resources for a 20-year $7.5 million loan, at 2.25 percent interest, the monthly residential fee would increase to $35.33. If the loan were for $10 million, the fee would go up to $42.27.
“The grants allow the city to do a lot of work, to get a lot of stuff fixed and then you will have some breathing room for the waste treatment system for quite a while,” Kell said.
Kell also added that the grant is not guaranteed but he believes the city will qualify.
He also recommended the city prepare as many sewer and water replacement projects as needed, including sewer replacement on Main Street and moving the tank from the airport to the treatment plant site.
Kell said the program covers not only sewer replacement, but also 50 percent of the cost for road replacement if a sewer or water project is done.
If the total cost of the projects doesn’t equal $10 million, the grant money is withdrawn first, Kell said.