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Perry council discusses $1.25M sludge‑box project, to seek $600,000 CDBG grant and match
Summary
City officials described a plan to install mechanical sludge boxes at the wastewater plant—a $1.25 million project—and said they will apply for $600,000 in Community Development Block Grant funding while planning options for the $600,000 local match, including debt with possible principal forgiveness through DWSRF.
The City of Perry discussed applying for a federal Community Development Block Grant (CDBG) on Tuesday to pay for the first $600,000 of a $1,250,000 sludge‑box project at the municipal wastewater plant.
City Manager Nate said the plan would replace recurring, expensive dredging with a mechanical solution that dries and removes accumulated solids. “So this is a grant application… the sludge box project, which is a $1,250,000 project. This is our plan to get funding for that project,” Nate said.
The council heard why the city is pursuing a CDBG award this cycle: Perry narrowly missed funding last year by one point and is making a renewed push. Nate said the project would address long‑standing notices of concern and reduce the need for periodic dredging of material that accumulates from Perry Lake.
Nut graf: The council’s discussion centered on how to assemble the other half of the project cost if Perry wins the $600,000 CDBG award. Officials said the city would need a matching $600,000 and outlined financing options that would spread costs over time while also preserving the city’s ability to pursue principal‑forgiveness through the Drinking Water State Revolving Fund (DWSRF).
Council members and staff discussed two likely paths for the match: (1) take on debt now and apply for DWSRF principal forgiveness programs that can convert part of borrowed amounts into forgiven principal, and (2) combine multiple water projects to qualify for higher forgiveness points. “One of them is to take out debt and then apply for a principal forgiveness opportunity through DWSRF, which we’ve used in the past,” Nate said, describing the approach that could reduce net cost.
City staff explained that principal forgiveness programs award points for communities that are investing in themselves and for larger combined project packages; the city’s current portfolio of planned work (sludge boxes, main line “killouts,” and plant rehabilitation) may help Perry qualify. Staff emphasized there is more planning and a required public hearing ahead: the council must adopt the application resolutions and hold a public hearing before submitting the CDBG request.
The council and staff also reviewed past cost history. Council members recalled previous dredging projects that cost roughly $250,000 several years ago and noted inflation and backlog could raise the cost for repeating dredging today well above that historic price. Staff estimated current dredging would likely be considerably more expensive now and said a mechanical sludge removal system would be a longer‑term, lower‑recurrence solution.
No final vote occurred at the meeting. Nate said staff will bring the full application, required resolutions, and a public‑hearing schedule back to the council for formal action.
Ending: Staff said they will proceed with preparing the CDBG application and supporting documentation and that councilors will see formal resolutions and a hearing notice at a future meeting.
