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Sterling City faces steep sewer costs after state rescinds grant; county to analyze loan terms
Summary
County staff told supervisors the state rescinded a previously promised grant for Sterling City (CSA 82) sewer replacement, then offered to cover half the cost and loan the remainder for 30 years. Staff said the loan could quadruple resident assessments (to about $89/month) and the board asked staff to analyze amortizing the loan over the system lifetime and identify funding options.
Sterling City residents may face sharply higher assessments after a state grant for their aging community sewer system was rescinded and replaced with a compromise offer that would pay half the project cost and loan the remaining amount to the county.
Joshua Pack, Butte County director of public works, briefed the board on options for County Service Area 82, a small community sewer system originally built during World War II that now requires substantial replacement. Pack said the…
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