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Columbiana council authorizes application for Clean Water loan to finish water project
Summary
Council voted to submit a Clean Water State Revolving Fund loan application for the final phase of the water treatment plant, approving the larger $5.5 million option to provide contingency funds and directing staff to file the application immediately.
The Columbiana City Council authorized staff to submit an application to the Clean Water State Revolving Fund to finance the final phase of the city's water treatment plant project, approving the larger, contingency-bearing option.
Council members discussed two financing options for the remaining work: borrowing $5,000,000 to finish the project or a larger $5.5 million option to provide a cushion for unforeseen costs. Council members noted that interest rates had recently risen (a councilmember cited a change from about 1.99% to roughly 2.75%) and that state funding could be delayed, which created a time-sensitive need to file the loan application.
Speaker 3 moved to accept resolution 11-25-09 to submit the Clean Water State Revolving Fund loan application for the $5.5 million option. The motion carried after a roll-call vote in which attending council members and the mayor recorded affirmative responses. The chair said the application would be submitted the following morning and that the council would be notified when an answer was received.
Council members emphasized this vote was an application step only and that approval of the loan and final disbursement remain subject to the state's funding list and program review. Staff were directed to complete the forms and secure the necessary signatures so the city would remain on the state list for funding.
