Granite Falls to seek $3 million in loans for water, sewer projects
Granite Falls will apply for three loans totalling more than $3 million for water and sewer projects.
The Granite Falls Town Council unanimously approved the Clean Water State Revolving Fund loan applications Monday night. The loans would need to be paid back over the course of 20 years with a 2.01 percent annual interest rate, compared to a 3.77 percent interest rate for a 20-year conventional bank loan, and would have annual payments about $32,000 a year less than the higher-interest conventional bank loan, according to the council's agenda notes.
A $1.9 million loan would be used for a number of planned improvements to the sewage treatment plant.
“Without this loan, we’d have to have [water and sewer] rates increases of 6 to 7 percent each year,” Mayor Barry Hayes said.
A $600,000 loan would be applied to installing a 25,000-gallon sludge treatment/storage tank at the water treatment plant. A third loan of $610,000 would be used to replace the pump stations on Central Avenue and Laurel Street.
Should the town be denied one or all of the loans, Hayes said, the council would look at the issue again and decide whether to reapply in the fall or settle on a different solution.
In other business, the council approved a resolution honoring Jessie Bowman, a World War II veteran who served in Company D, 345th infantry of the 87th Infantry Division as a gunner operator of an 80mm mortar.