Members of the Crofton City Council approved an offer from the United States Department of Agriculture for an option for funding the City’s planned new lagoon sewer system.
Mayor Bob Evans reported that following last month’s meeting with Miller and Associates, the City’s engineering firm for the lagoons, he had been contacted by the USDA with two options for terms of funding offers.
The approved offer was “Funding Package #2” which included total funding of $4.7 million: $3,495,821 for principal and $1,248,799 million in state revolving fund forgiveness, or 26.32% of eligible costs.
The term of the $3.495 million loan would be over 30 years at an annual interest of 2%.
Following a short discussion period, the Council accepted the “Funding Package #2” offer – which was estimated with a $205,863 annual cost to the City each year, assuming 404 users and an estimated cost per user of $43.49/user/month.
Based off the Crofton Journal’s bill, the City is currently charging $42 for base water, plus a gallon charge, and $35 for base sewer rates.
According to Mayor Bob Evans, the accepted financing plan would not require an increase in the City’s billing to the customers.
The package was offered with the following: “Due to the limited amount of funding currently available, the DWSRF program is unable to provide financing until October of 2024. Until funding is obligated for a project, financing and interest/administrative fee rates are subject to change.”
In other business the Council:
* Approved bids for just less than $200,000 from three local suppliers for the replacement of 5th Street north of Highway 12 with a start date following the dismissal of school in May, 2024.
* Agreed to send a letter of support for a project introduced by HARTELCO of Hartington, which could bring fiber optic and cable TV services to Crofton in late 2024-2025.
* Approved the creation of a “Code Enforcement” personnel position – to take up and enforce code violations that the Knox County Sheriff or State Patrol will not do;
* Approved the Farmers & Merchants State Bank, Crofton Journal, and Attorney Mike Stevens for another year of service;
* Discussed a water drainage project on the “Omaha Street Development project”
* Approved JEO as the Street superintendent and City engineer;
* Approved rental of truck parking on the lots north of the community on Highway 121.
New accessible ramps and railings on the south side.