Friday, November 24, 2000
|
Friday, November 24, 2000 |
|
Sewer system tab is nearly $7 million By JOHN THOMPSON It's going to cost Senoia nearly $7 million to get its sewer system completed. City officials got the latest cost estimate Monday afternoon from Joiner Smith, who represents the state Department of Agriculture's Rural Development Division. In order to pay for the system, Senoia is attempting to get a $3.5 million loan from Rural Development, coupled with a $2.6 million grant from the organization. The city has to commit to $600,000 in funding from its own coffers as part of the funding proposal. In a lengthy meeting, Smith outlined all the federal requirements for the city obtaining the funds. Part of the process is making it mandatory for all residents to hook up to the system. The city already has passed an ordinance to that effect, but Smith also discussed the minimum rates. Residents will pay $19 for the first 1,500 gallons and $4 for each additional 1,000 gallons. Commercial customers will pay $220 for the first 20,000 gallons and $4 for each additional 1,000 gallons. Smith said the process the city is going through does not necessarily guarantee them funding, but it is a necessary part of the application process. Included in the cost is running 50,000 square feet of sewer line and building four pump stations. The city also will be required to have the money zapped out of their account each month electronically and maintain a special fund of 10 percent of the annual payments in case something goes drastically wrong with the system. City officials will be required to insure the system, as well as any city employees who will be collecting monthly sewer bills from residents. After the city completes the lengthy application, federal officials will give the city an answer. If the city receives the funds, it will be required to gain temporary financing for the system through a local bank, much like a construction loan. After the bank's funds are exhausted, Rural Development will pay the bank off and allow the city to draw from the grant funds. The payback on the loan is 40 years and will be examined every five to seven years to determine if the city can get an equal deal through local financing, Smith said.
|
||