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Ellenville wins $2 million toward $6.5 million wastewater rehab; village seeks 0% EFC financing to limit rate impact
Summary
The Village of Ellenville announced a $2 million award from HCR for a $6.5 million wastewater treatment rehabilitation; village officials say the EFC funding structure and potential 0% financing should reduce the burden on ratepayers by roughly $1 million, but work remains to secure final financing.
The Village of Ellenville said it has been awarded $2 million by the New York State Homes and Community Renewal program to help pay for a planned $6.5 million rehabilitation of the village wastewater treatment plant.
The mayor told the board the HCR award will be applied alongside earlier financing from the Environmental Facilities Corporation. Because EFC funding will be treated as secondary in the proposed funding plan, officials said that, from EFC’s perspective, the grant balance changed and the village’s net benefit is roughly $1 million in reduced grant burden to ratepayers. The mayor said village staff are continuing to pursue 0% financing through EFC to further limit rate increases tied to the project.
“This $2 million is not a straight $2 million simply because there’s an offset we will experience with EFC,” the mayor said, explaining how grant stacking alters the EFC grant calculation. He said securing 0% financing would be “a huge component” of keeping rates down as the project proceeds.
Village officials described the work as intended to address design problems and failures at the plant and to remove the facility from state-required corrective lists. No construction contract or timeline was finalized at the meeting.
Why it matters: Village officials said the project is essential to restore reliable sewer-plant function and to avoid long-term regulatory and environmental risks. The mayor emphasized the awards and financing decisions will affect the ultimate cost shift to ratepayers.
What’s next: Officials said administrative steps and financing negotiations with EFC will continue; the village did not announce a construction start date at the meeting.
