Weldon has added another option for replacing or improving its water treatment plant.
During a meeting today the town board, with Martha Alford absent, approved seeking state grant and loan funds for improving the existing plant.
Cost of the improvements are expected to be $3,767,477.50, Leo Green, of Green Engineering, told the board.
The application is due Thursday and the town will know sometime in January whether it is eligible. Final funding, should the town be approved, will not occur until next September, Green said.
Green explained cost projections for the project have increased since the last estimate. That is because the project now includes electric meters at $275,000 for 775 in town and 130 in the annexed area. It includes transmitters, the computer software and billing system. “Since the original budget, the numbers are close to being a year old.”
Upgrades to the plant would also require a third pump at the raw water system and 12-inch pipes to handle 2 million gallons of water a day.
It appears, Green said, there will be little difference between funding through public water supply and Rural Development. Public water supply funding has an interest rate of 2.22 percent over 20 years and Rural Development has a 3 percent interest rate over 38 years. “The availability of grants is better with the state than Rural Development.”
Green explained Rural Development is rethinking its grant process. “If it goes like we’re thinking, Weldon may not be eligible.”
Mayor Julia Meacham said that is because the town’s water bills are not high enough.
Use of the funds would not have to be approved by a bond referendum, Green said. “We would have to have a revenue bond.”
Board member Earl Smith asked how the town could do this if the water department is losing money.
Town Administrator Phyllis Lee explained the loss in the water department is through accruals and depreciation. “We have to cut expenses and increase revenues,” she said, explaining she and Public Utilities Director Donald Crowder are reviewing those options.
Lee reminded the board should the town be approved and then decide not to use the funds, the town would have to pay Green $12,500. If the town chooses to use the funds that cost would be included in the appropriated money.
Smith’s concerns could be addressed through a request from Halifax County, which the town sells to, for more water.
Crowder said the county is willing to buy between 1.1 million to 1.2 million gallons of water and Northampton is interested in buying more.
The only thing state funds would not cover is rehabilitating the plant to serve the annexed area, which would mean an additional $451,000, which Lee said could be sought through Rural Center funds, other options or the water rates.
Meacham explained the application is another option the town has. Other options include doing nothing or having the Roanoke Rapids Sanitary District take over the system. The town has also discussed building a new plant.
“We’re not rushing anybody,” the mayor said. “This is a major decision for the town of Weldon.”
