Boozman Aide Discusses Sewer Project Finances

Wednesday, April 14, 2010

— Gravette city officials met with a representative from Congressman John Boozman’s office last week to discuss financing Gravette’s wastewater treatment facility.

Philip Moore, Policy and Projects Director for the Congressman, was at City Hall to learn about the project and to see if any federal grants could be secured to help finance the $8 million project.

The meeting was arranged by Council member Byron Warren. He and other Council members, Mayor Bill Howard, Superintendent of Schools Andrea Kelly and others were present.

Moore empathized withthe city’s position that under the present financing system the cost of the project would see Gravette sewer rates go up dramatically to comply with the federal and state mandates for the project.

The city has locked in a 2.75% low interest loan to help with financing and voters last year approved a three-fourth cent sales tax as an additional financing mechanism.

However, these two money packages will also require raising sewer rates, which some have estimated as much as doubling or tripling the present rates.

Financing such an expensive project through usage by the less than900 sewer customers in Gravette is extreme since loan funds will have to be repaid over a 40-year period.

Warren and others have been visiting nearby cities to observe their sewage disposal operations.

Gravette’s situation is complicated by the fact the local system drains into the Spavinaw Watershed, which is classified as a “losing stream”.

The present system, built about 25 years ago, works as it was designed to do.

However, new stricter EPA mandates now require the expensive modification, or replacement, to reduce phosphorus and ammonia from the effluent.

Moore told those present that grant funding will require special congressional approval and that additional funds from the existing federal agencies “are not promising”. He said that Congress has no oversight how agencies distribute funds appropriated for their disbursement.

Moore also told the group that federal stimulus funds are not available but he said the Congressman will be made aware of the financial needs of the city and “will do what he can to assist”.

Gravette is under mandate to have a plan in place by November or face possible fines for noncompliance.

News, Pages 1 on 04/14/2010