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Kanosh council authorizes pursuit of roughly $272,000 loan to finish well project after power-line rebuild estimate rises
Summary
The Kanosh Town Council voted to pursue about $272,000 in additional loan funding after Dixie’s finalized rebuild estimate for a 3‑phase power line rose to $372,399.59; council expects a $100,000 sale of the north power line to Dixie could offset some costs.
Kanosh — The town council voted to pursue roughly $272,000 in additional loan funding to finish a water well project and cover cost increases tied to rebuilding a 3‑phase power line, the council said during its regular meeting.
Chair Neil Shumway told the council Dixie’s finalized price to rebuild the town’s 3‑phase line rose to $372,399.59, up from an earlier estimate of $306,471.56. The council has discussed selling the north power line and its right‑of‑way and poles to Dixie for $100,000; the sale would be used to offset the rebuild cost if the contract is finalized.
“We’ve got to figure out a way to pay for this,” Shumway said during the discussion and noted the town’s existing well‑project financing had left the town about $500,000 in loan exposure after a $300,000 grant. “So we will be seeking roughly 272,000, in additional funding, in additional loan. It probably won’t be a grant mix like the other has been. It will be strictly loan to finish that.”
An unidentified council member who moved the funding motion framed it as time‑sensitive: “I move that we do what we need to do to pursue whatever money we need to make this, thing happen.” The motion was seconded and approved by voice vote.
Council members and staff said the increased rebuild scope included additional junction boxes and connections (noted as improvements around 300 South) to serve new lots and tie‑ins. The chair said Ben Corey, who has been working on the well project, estimated the higher loan would add about $12,000 a year to the town’s debt service; Shumway said that figure was included in updated water‑rate calculations used when the council set new rates earlier in the year.
The council also reported the town’s original well project had been funded with a mix of grant and loan; the grant portion was roughly $300,000 and the loan portion roughly $500,000 before adding the rebuild. Council members said contingencies in the project budget might reduce the net borrowing need once the project finishes, but they did not commit to relying on contingencies to repay a new loan.
Next steps: the council authorized staff to pursue the additional loan and requested further details from project manager Ben Corey and the town attorney about contract language and repayment timing. Council members said they preferred to proceed quickly so Dixie could schedule work and obtain materials to finish on the town’s timetable.
No formal contract with Dixie was finalized at the meeting; council members said they had given their attorney direction to ensure any sale of the line protects the town’s interests before signing.
