(KNZA)--The funding is now in place for the construction of a new Hiawatha water treatment plant.
The City Commission Monday evening approved a letter of conditions for a $3.5 million loan through USDA Rural Development for the project and authorized Mayor Steffen Shamburg and City Clerk Vivian Constable to sign the necessary documents.
Dan Fischer, loan specialist with USDA Rural Development, reviewed the conditions for the loan. Fischer said the interest rate will be 1.75 percent, with a 40-year repayment period.
Mayor Shamburg it will serve as secondary funding for the project. He says the initial funds will come from a loan through the Kansas Department of Health and Environment, which comes with a 30 percent principal forgiveness.
In related business, the Commission approved soliciting bids for the water treatment plant equipment and proposals to provide geo-technical services for the project.
The city plans to construct a new water treatment plant to address the ongoing problem of high nitrate levels in its water supply system. The total project cost is placed at more than $4.9 million.
The city is expected to advertise for bids for the project in next 280 days.
Shamburg says he sees water as one of the city’s most valuable resources. He says one of his top priorities as mayor has been providing residents with good drinking water.
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