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Designs cleared; Leitchfield utility staff outline plan to find roughly $45 million for wastewater plant
Summary
Consultants told the Leitchfield Utilities Commission that Division of Water approval has cleared the way for bidding design plans for a new wastewater treatment plant and that staff will pursue a mix of grants, principal forgiveness and subsidized loans—estimated at about $45 million—to finance construction.
Consultants told the Leitchfield Utilities Commission on June 18 that the Division of Water approved the wastewater treatment plant plans in April and that a complete bid package of plans and specifications should be ready by the end of 2026.
"On the technical side, we did get Division of Water approval for the wastewater treatment plant plans in April," said Matt, a CANTEK consultant. He said subconsultants are on board and that staff aim to have a bid-ready package by year-end.
The meeting then turned to funding. "What that means from the funding side is that I need to start finding $45 million for you all," Matt said. He described outreach plans to the Kentucky Infrastructure Authority, USDA Rural Development and local congressional offices, including a planned meeting with Congressman Guthrie's staff, to pursue grants and subsidized borrowing. He added that a portion of the potential package could include principal forgiveness—grant-like reductions to loan principal—if secured through programs such as KIA.
Commissioners emphasized competitive pressures for large infrastructure funding. The consultant cautioned that federal and state funds are available but highly competitive and that subsidy or principal forgiveness will likely be necessary to make borrowing feasible in the current market.
The consultant said the project ranked well in the planning-and-design phase with funding agencies, which should help when the team applies for construction funds. Commissioners and staff agreed to continue coordination with KIA, USDA Rural Development and elected representatives as the financing plan is developed.
Next steps: staff and the consultant team will produce a funding plan over the next month, return to the commission with recommended grant/loan mixes and pursue meetings with state and federal funding partners.
