Loyal will borrow about $1.5 million for 2017 major street project
The major Main and South street reconstruction project that upended traffic routines and business in Loyal over the past summer and fall is a recent memory now, but Loyal city residents still have to pitch in to pay for its share of the improvements. In all, Loyal’s share of the street and underground utility work will total about $2.5 million, and utility rates and property taxes may be going up soon to cover the bills.
The state Department of Transportation will pay for the lion’s share of the street surface improvements, but Loyal decided the reconstruction project was the time to dig up decades-old water and sewer lines and replace them. That cost is the city’s alone, and utility rates will ultimately be the source of funds used to pay those bills. In addition, the city will be borrowing almost $500,000 over a 20-year term to cover its share of the street/sidewalk/street lighting costs.
The city was able to secure significant grant funding and low interest loans through the U.S. Department of Agriculture to help pay for the sewer and water upgrades. That will lessen the impact on utility customers, plus, the loan repayments will be spread over 40 years.
If you wish to read the whole article, pick up this week's newspaper or subscribe for our online edition. Subscribe to the Tribune Record Gleaner at http://centralwinews/eedition/