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Expansion project comes in under budget
Final loan amount for Cove wastewater expansion expected to be $1.4 million
COVE — Mayor Lyndon Rose signed the final acceptance report for the city’s wastewater expansion project during Tuesday’s regularly scheduled city council meeting.
“I am very pleased with the end results of the project,” Rose said. “The quality of the work is very good.”
The project came in slightly under budget, with a final loan amount projected to be just over $1.4 million. Users may see their sewer rates jump to $45.
Depending on final numbers, the annual payment on the $1.4 million 40-year loan will be about $58,000.
“The first payment is due one year after the loan starts,” said Brad Baird of Anderson Perry and
The city expects to finalize paperwork on the loan this month.
Sewer rates will be calculated based on funds needed for the annual loan payment, as well as some operation and maintenance costs, and the current number of users.
The city currently has about 330 users. Last May, sewer rates, increased from $30 to $35.
The council discussed a proposed sewer rate increase of $10. The final number will be determined at the February meeting and must meet the requirements of the lending agency.
“Through this whole process the city has tried to keep the sewer rates as low as possible,” Rose said.
To help lower the total loan amount, the city used $150,000 garnered from the city’s hydro production facility to pay up front project costs, including some design and permitting fees. The project is scheduled to close about $96,000 under budget.
“I am very pleased the project came in under the budgeted amount,” Rose said.