The two governments must still hammer out an interlocal agreement on the matter, for which talks are still ongoing, County Attorney Glynn Rollins said following a meeting this morning.
Commissioners this morning approved the letter of intent and the request for the obligation of grant and loan funds for the project.
The timeline for construction once the interlocal agreement is ironed out is about two years and there is a five-year timetable to expend the funds, said George Vital, area director for USDA Rural Development.
The money for Weldon’s share of the project. $4,735,000, has already been obligated, Vital said. “Weldon is technically ahead of you.”
Funding of the project is based on usage, Vital explained. Weldon will use 25 percent of the water treated at the plant, which will produce 2 million gallons a day, while the county will use 75 percent. “That is the way the total cost is acted upon.”
Total cost of the plant is nearly $20 million and the funds will be used to replace an existing plant which Vital said has “reached its time.”
The county’s share of the project will come from a $10.438 million loan and a $3.314 million grant. The county must also contribute $1 million which will come from utility funds and not the general fund.
The 40-year loan carries an interest rate of 1.375 percent. “This is the first time we have seen interest rates that low,” Vital said.