By BOB SHRALUKA
WZBD.com
City of Decatur officials continue to stress that they have no choice but to embark on a huge project which will replace lead service lines and aging water mains in the city.
A public hearing at city council’s June 2nd meeting allowed city residents to ask questions and offer their views of the project.
The hearing began with City Attorney Anne Razo talking about how the project is mandated by the federal government and how the city received “an incredible funding package” from the State Revolving Fund (SRF).
The funds will service 35-year bonds which will fund the project.
“We have to do it,” Razo continued. “This will be something that will be good for 50 to 60 years.”
Numerous communities across the state are said to be facing the same mandate.
Mayor Dan Rickord pointed out that the city is 190 years old and that the last water rate of several years back funded two new water plants, replacing plants that were 72 and 54 years old.
Among its approximately 25 miles of water mains, many of them are between 50 and 100 years. A repair of each main break can cost between $5,000 to $20,000, Rickord pointed out.
He talked about how when a water tower had to be drained several years ago, its refilling and accompanying hike in pressure brought about 30 main breaks in 30 days.
Rickord also had praise for city employees who have recently replaced six service lines – and by doing so “saved us thousands of dollars.” But the upcoming project is far too large for city workers to handle, he added.
“We’ve laid more lines in the past six to seven years than in the previous 50 years. We’re trying to be progressive,” the mayor stressed.
And to address some of the complaints being heard, he explained how utility projects must be done through through user fees while projects like the roundabout must be funded by tax dollars.
323 LINES: A total of 323 lead service lines are targeted by the $21 million project which may begin in July and continue for a full year.
A loan-grant agreement calls for a $5.5 million grant (no payback) and an interest-free loan of $2.5 million for the city, along with a $10 million low-interest loan at 2.898% and a $3 million loan at a rate a little higher but still lower than through the open market.
And the loans may be spread out over a period of 35 years.
The grant and interest-free loan are being provided by Indiana’s State Revolving Fund (SRF).
The financial setup has been praised by officials as the best deal possible.
Ben Adams, an engineer with Commonwealth who has worked with the city on several projects, has said that over 100 other Indiana communities – also under federal mandate – applied for SRF funding, but only Decatur and 13 others were getting the sweet offer.
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