The Britton City Council took a step towards putting the final funding in place for the city’s $5.7 million sewer reconstruction project at its regular meeting June 10.
A resolution to approve funds from Rural Development totaling $1,740,000 was passed. Another resolution approving $209,000 for the first phase of the project done last year was also approved. The second reading of those resolutions will be held at the July meeting of the council.
A total of $425,000 of the Rural Development money is a grant, while $1,315,000 is a 40-year loan at 2.75 percent.
The city had previously received $4 million for the project from the state Board of Water and Natural Resources. That funding package includes a $1 million grant from the Consolidated Water Facilities Construction Program, a $500,000 Water Quality grant, and a $2.5 million 30-year loan from the Clean Water State Revolving Loan Program at 3.25 percent interest.
To repay the loan money, expectations are that monthly sewer bills will need to go up from the present $24 to between $40-$45 per month. That increase is needed in order for the city to remain under its debt limit dictated by state law.
The first phase of the project was done last year when the city’s sewer lines were cleaned and televised. Results showed that about 80 percent of the city’s old clay sewer pipe was in need of replacement. The other 20 percent has already had the clay pipe replaced with PVC.
The project will take most of two construction seasons. Hopes are to begin the project later this summer.
The next regular meeting of the board will be Monday, July 8.