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Tuesday, 07 October 2008 |
By WILLIAM LANEY
Managing Editor
Wapakoneta city administrators are working on securing a zero-interest loan to help with the construction costs for a $10 million water treatment plant project.
Wapakoneta City Council members unanimously approved Monday legislation to apply for the 20-year, zero-interest loan through the Ohio Public Works Commission.
Safety-Service Director Rex Katterheinrich said they are seeking $900,000 to help with the $1.4 million needed for construction of wells in a new well field and to run raw water lines from two well fields to the planned Wapakoneta Water Treatment Plant and the $8.6 million needed for construction of the plant. Funds to pay for the project and the zero-interest loan would come from the city’s Water Treatment Fund.
“The important aspect of this is the fact the loan is zero interest, and the reason we can do this is because of Gov. Ted Strickland’s two-year program to increase funds for Issue 1 projects,” Katterheinrich told the Wapakoneta Daily News. “This benefits local residents because we are not paying any interest on that $900,000 — all that has to be paid back is the principal over the next 20 years. It is a significant savings in revenue.”
Issue 1 formerly was known as Issue 2 funding.
Mayor Rodney Metz said if the city receives the loan that it would be a “tremendous financial help.”
“When you can obtain a loan at zero percent interest, it results in a tremendous savings to the city and to the city’s residents and utility users,” Metz said. “The loan also is a way to keep the
project moving, and city does not have its hands tied as badly because it does not affect the city’s borrowing rating.
“I am not saying we want to borrow any money, but emergencies do happen from time to time,” the mayor said. “The higher our rating the better rate we receive on the bonds for outstanding loans we may take out or refinance.”
City administrators previously utilized the program when they installed sanitary and stormwater sewers between Harmon Field and the Wapakoneta Middle School baseball field.
Katterheinrich said engineers with Poggemeyer Design Group, the firm designing the water treatment plant, made him aware of the additional funds available.
Approval of the application rests with members the District 13 Integrating Committee, who should make a decision by the end of the year.
While there is no limit on the amount that can be sought, Katterheinrich and Poggemeyer Design Group engineers decided on an amount most likely to be approved.
“The main restriction to the program is the money available to be awarded by the District 13 Integrating Committee,” Katterheinrich said. “There are only so many dollars that can be awarded — if you get greedy then your chances to be denied goes up exponentially, so we tried to be realistic on what we thought we could be successful in being awarded.”
The remainder of the Wapakoneta Water Treatment Plant project is to be funded through the Ohio Water Development Authority.
Plans call for the city to take bids on the project this fall and to sign a contract this winter, Katterheinrich said. |
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Last Updated ( Wednesday, 08 October 2008 )
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