(KNZA)-- The city of Hiawatha continues to take steps to address the ongoing problem of high nitrate levels in its water supply system.
The City Commission Monday evening approved an agreement with the Kansas Department of Health and Environment for a loan of up to $6.7 million to help fund the construction of a new ion exchange water treatment plant, new well field and transmission lines.
The loan, which contains an interest rate of 2.21 percent, comes with a 30 percent principal forgiveness.
The Commission also approved making an application for a Community Development Block grant through the Kansas Department of Commerce for the project. Lawrence-based Governmental Assistance Services will prepare the grant application for a cost of nearly $9,000.
Mayor Steffen Shamburg said the city is exploring multiple options to finance the needed improvements. The city is under a consent order from KDHE to address the nitriate issue.
In a related matter, the Commission approved renewal of an option for the purchase of a tract of land north of town from the Koenig Trust for the construction of the proposed new treatment plant.
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