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Council hears $5 million water-plant repair plan and considers loan, rate increases to pay for streets
Summary
The Mount Gilead service committee reported a roughly $5 million budget to keep the village water-treatment plant functioning and recommended a phased rate increase to qualify for a low-interest loan; councilors also discussed street-resurfacing priorities and bonding or loan options to expand annual paving funds.
Mr. Phillips, a council member reporting for the Service Committee, told the Mount Gilead Village Council the committee had budgeted about $5 million for immediate water-treatment-plant work needed to keep operations running and recommended seeking a low-interest state loan to cover the cost.
The committee also discussed a possible consumer-rate plan that would raise water rates by $5 per year for three years (noted as 2027–2029) to meet loan criteria and spread costs over time, Mr. Phillips said. Committee members, he added, were unanimous in their view that the village should remain independent and not transfer ownership of the water system to Delco; later clarification from the administrator indicated Delco had told the village it was not interested in purchasing its water.
Village Administrator Dereck Allen provided operational details: the wastewater plant treated about 18.1 million gallons in January and the water plant pumped roughly 8.8 million gallons that month. He reported a recent lead service-line replacement near Rich Street completed Jan. 28, 2025, and a 6-inch ductile-iron water-main break on Orchard Drive on Feb. 3. Allen also said the village is evaluating the Douglas Street water-tower security upgrades (a property-line survey first) and will seek quotes for fencing.
On streets, committee members outlined priority resurfacing projects for 2025, including West Union Street and the northern section of West U Drive (the 700 block up to Delaware), with initial approximate funding estimated at $150,000 for two streets. The group noted an ideal annual resurfacing target of about $500,000 but acknowledged current local funds likely yield about $125,000–$150,000 without additional borrowing or grant matches.
Administrator Allen described financing options discussed at the committee: the village could wait on grant outcomes, bid projects and use general-fund supplements, or consider a loan (not greater than 10 years) to provide matching funds for OPWC or other state grants. Allen cautioned that a harsh winter is producing heavier demand for resurfacing work regionally and that contractors may be harder to secure when bids open.
What happens next: council members asked staff to continue refining cost estimates and funding scenarios and to return with more precise bid timelines, grant-application status and a recommendation on whether to pursue a state loan or other borrowing options.
