City wants money for I&I problems

Washington is pursuing up to $2 million for water and sewer projects.

If approved, the money would come from the Clean Water State Revolving Fund. The money — low-interest or interest-free loans — may be used for eligible water and/or wastewater projects. The fund will make at least $65 million available this funding cycle. March 31 is the deadline to apply for part of that funding, according to Allen Lewis, the city’s public-works director.

Councilman Doug Mercer expressed concern about borrowing “$2 million not knowing what the project is … or are we going to submit paperwork prior to doing that?”

“Our intent, right now, is to look at the drainage basin for 13^th and Bridge streets and that pump station. We have a lot of I&I issues there, as well as in the historic district. … We wanted to get this information to you as quick as we could because there’s a March 31 deadline on it,” City Manager Brian Alligood said.

If the city receives $2 million interest-free, that money would be paid back at $100,000 a year for 20 years, according to a city document.

Even if the city does not qualify for the zero-percent interest rate, the maximum percentage rate would be about $1.7 percent, or an annual payment of about $115,000 a year for 20 years, Lewis wrote in a memorandum to the mayor and City Council.

“So, it’s an opportunity for you, at the worst, borrow 1.7-percent money. We can’t find it that cheap. We have plenty of rehab projects we need to have done,” Alligood said.

“This money is, basically, out there almost for the asking,” Councilman William Pitt said.

“That’s what we hope,” said Alligood, adding that applying for the money is a competitive process. “We feel that the age of our infrastructure and the I&I problems we’re having would make us very competitive (for) those grants or loans — loans, not grants.”