Clarion Enters Into Loan Agreement For Wastewater Treatment Project

            The Clarion City Council took the last big steps toward building their new Wastewater Treatment Plant during the regular meeting on Monday, July 6.

            First, the city held a public hearing before agreeing to enter into a loan agreement with the State Revolving Fund (SRF) for an amount of up to $6.2 million in order to pay for the project.

            The SRF is a state financed program designed specifically to help communities like Clarion with water and wastewater projects like this. Through the program, the city will have access to a pool of funds of up to the $6.2 million amount, which can be paid back at an interest rate of 3%.

            While the city will have access to the $6.2 million, they won't necessarily have to borrow the entire amount at once. Interest will only be charged on the actual amount borrowed at any given point in time.

            "This just sets the maximum amount," explained Ron Fiscus of PlanScape Partners.

            Paid back over a period of thirty years at such a low interest rate, Fiscus recommended that the city utilize as much of the SRF money as possible to keep their own reserves sustained for other upcoming projects. Particularly projects where unexpected costs may arise, such as the planned slip line project.

            "Keeping a reserve in that account to accommodate that is a prudent action," said Fiscus.

 

The complete story may be found in the July 9, 2015, issue of the Wright County Monitor.