GRAVETTE — Gravette City Council, on Thursday night, approved the issuance of $3 million in bonds to finance a wastewater treatment facility project which has been under discussion for more than four years.

The action paves the way for issuance of the bonds on March 5, according to Bob Wright, senior managing director of Crews & Associates, a Little Rock firm handling the sale.

During the same council session, the governing body also approved a bid totaling slightly more than $1 million from a Missouri firm, Seven Valleys, to begin work at the facility. The project has been at the center of negotiations with ADEQ, the Arkansas Department of Environmental Quality.

Both actions had been discussed and tentatively approved at a full council committee meeting earlier this month.

Wright told the council the bonds will be sold at a very favorable rate - 2.32 percent - and will pay out in a projected seven year period.

Funds from a 3/4 cent sales tax, which has been in place since voters approved the measure in 2009, will finance the project. Funds accumulated since that time and future sales tax collections are expected to pay off the 10-year bonds three years early.

Estimates for repairing or replacing the treatment plant had ranged upwards to as much as $9 million, which would have been financed with a loan at 2.75 percent interest, according to figures received in 2009.

One other option that had been presented by engineers was to pipe Gravette’s sewage to Decatur for treatment in that city’s plant. Potential cost for that project was $7 million.

A change in the city’s engineering firm resulted in design change and lagoon leak repair in the current system as presented by Morrison-Shipley, the city’s engineering firm.

The city is now in the position to move forward at a cost of about one-third of original estimates and with a smaller loan at a lower interest rate.

City Budget Approved

Other council action at the Thursday night meeting included approving a bid of $38,284 for the first phase of storm drainage improvement work at the intersection of Second Ave.

S.W. and Dallas Street. It is financed through a grant from Wal-mart and is part of a long-range plan for future drainage improvement leading to that intersection.

The council also closed out the 2012 city budget and approved a budget for 2013. The new budget totals $4,105,764 which includes $1,641,031 for water-sewer operations, $505,500 for capital improvements and $1,961,233 for municipal operations. This last figure includes $603,640 for the police department, $387,928 for the fire department and $183,966 for the street department. Administrative costs, which include all other city operations, total $326,934.

The council approved a resolution which supports a state-wide movement to provide cities with more complete sales tax receipt information. The present system makes budgeting revenue difficult. The plan is being promoted by the Arkansas Municipal League.

The council moved $10,000 from the Walton Foundation grant for a splash pad at the pool to a skate park project. That project has received a matching $27,000 grant from the Arkansas State Parks Department. The park, which will be located in the Pop Allum Park complex, is in the early design stage.

The council also approved its meeting schedule for the year, which includes committee of the whole meetings at 6 p.m. the second Thursday of each month at city hall and regular council meetings at 6 p.m. the fourth Thursday of each month at the civic center. A few dates are altered due to holidays and are subject to change by council action.

News, Pages 1 on 01/30/2013