Gray, Georgia Weather

City considers sizes, funding options for sewer plant
by Chuck Thompson
May 23, 2013 | 1140 views | 0 0 comments | 11 11 recommendations | email to a friend | print
Gray City Council members Loretta Lipsey, David Tufts and Benny Gray Jr. met with city water superintendent Russ Dorman and Matt Smith of the Carter and Sloope engineering firm in a called water committee meeting last Friday morning to explore funding options and possible rate increases to pay for a new waste water treatment plant.

The USDA recently denied the city’s request for a $2 million grant and loan to build a new $10 million 1.2 million gallon waste water treatment plant, saying the city did not need a plant with that much capacity.

Smith and Dorman told the council members that the city could still build a 1.2 million gallon plant and borrow the money for it from the USDA on a 40-year loan that would wind up costing the city about $18 million to repay, or with a 20-year loan from GEFA that would cost the city about $13 million to repay. The GEFA loan would have a lower interest rate but higher yearly payments due to the shorter period of the loan.

Dorman said he and Smith have been working to come up with a water and sewer rate schedule that would generate the money needed to pay for the plant.

“Our current rate structure is too complicated,” Dorman said.

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