Still, that could mean the project would cost more in the long term, although how much more won't be known until bids are in -- also a process that would be delayed a year, Mayor
The new plant, to be built on a 30-acre site on the west side of
The bulk of the cost will be paid for with a mostly federally funded loan administered by the
Plans now call for construction to begin next spring and finish by mid-2016.
But new legislation is changing the rules on the water pollution control loan program,
The new rules don't take effect until sometime in 2015, Fischer said, hence the talk of holding off on construction.
Among the major changes the new law will bring: Municipal borrowers, such as the city of
In addition, the new program will include some form of principal forgiveness, the specifics of which still are being worked out; that, too,"would be really advantageous for
In fact, depending on how much principal is forgiven, it might be possible to reduce the sewer rate hikes, Pannier said. At the very least, they wouldn't go up any more than now planned, he said.
On the other hand, there will be some money lost if the projects sits on the shelf for a year, Fischer noted. That's because the interest rate on the IEPA loan will rise slightly, and because of the usual inflation in construction costs.
It will be up to the council to decide Monday if making smaller payments over a longer term, which, again, would make more money available to the city each year but could add to the cost of the new plant, is worthwhile.
Delaying the project would result in "what I would call a more reasonable loan payment, and less stress on the city," Pannier said.
The other two items on the agenda up for a possible vote Monday are increasing a line of credit to take out a loan to pay the engineers, money that will be recouped when the delayed IEPA loan comes in, and hiring a new police officer.
Go to www.morrisnil.org to view the agenda, or for more information on the sewer plant project.
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