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Jonesborough approves USDA financing steps for new water treatment plant

2172380 · January 1, 2025
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Summary

The Board approved multiple USDA loan resolutions to fund a long-planned replacement and upgrade of the town’s water treatment plant, including a referenced $7 million loan and direction to finalize loan documents.

The Jonesborough Board of Mayor and Aldermen approved three USDA loan resolutions to advance the town’s plan for a new water treatment plant and transmission improvements.

Mayor and staff described the existing plant as undersized and aging. “We have a plant that'll pump about 2,700,000 gallons a day. That's about it,” the mayor said during the meeting when explaining the need to increase capacity. Board members said the replacement will aim to roughly double pumping capacity to meet current demand and improve resilience.

Staff emphasized that the town provides water to a broad service area, touching much of Washington County, and that upgrades will improve supply for residents, agricultural customers and fire protection. The board discussed prior investments that prepared the town for this step, including recent meter work and phased planning.

During discussion aldermen and staff noted interest rates, project sequencing, and reuse of existing infrastructure when practical. The meeting record includes a reference to a $7,000,000 USDA loan (identified in the vote as “Loan 32”) and shows separate approval motions for multiple USDA financing resolutions; the motions carried.

The board directed staff in Finance and Public Works to finalize loan paperwork and return with contract documents and implementation steps. Officials said final project budgets and construction schedules will be reported to the board as the USDA documents are completed.