District waits for project funding

The Jay County Regional Sewer District signed final paperwork and may receive news about funding as soon as next week on Earth Day.

Board members signed final agreements with Commonwealth Engineers and financial adviser H.J. Umbaugh and will submit paperwork to the U.S. Department of Agriculture's Office of Rural Development in order to finally pin down funding for three sewer projects in the county.

The sewer district's request for grant/loan funding from Rural Development has been pending since November.

"They need to be submitted to RD before they'll give you a letter of conditions," said Ben Adams of Commonwealth about the paperwork.

Adams, however, informed the board that he believes the district has just about secured that funding. He told the board he had heard rumblings that Rural Development might announce the funding award on Earth Day (April 22).

"I can't confirm or deny that," he said of the rumor. "I'm hoping by Earth Day I can tell you some definitively."

Adams explained before and again Monday that the slowdown likely came in part due to the federal stimulus package. Due to the stimulus, Rural Development was flooded with project requests and overwhelmed.

The sewer district anticipates receiving 45 percent grant funding with a 55 percent loan for the three projects, which have an estimated price tag of $1.2 million.

In other business, board members discussed options on handling billing once the sewer projects are completed.

Board president Gerald Kirby suggested soliciting a price from Linda Kiester in North Manchester, who does billing services for several regional sewer districts in the state.

"She's very reputable and has been in business for a long time," said Adams of Kiester.

Kirby also said he will get a quote from Rose Morgan, CPA, who operates an office in Dunkirk, to see if she might be able to handle bond payments and bookkeeping.

Adams informed the board that Kiester might also be able to handle those duties as well as billing.

Kirby also informed the board that the district will need to finalize sewage treatment terms with the cities of Portland and Dunkirk.

"I have a draft agreement we can look at," Adams said. "We probably need to do it here in the next month or two."

Once the bidding process is completed, H.J. Umbaugh will complete a final rate study taking into account debt repayment, maintenance, administration costs and the cities' treatment rates before a final figure will be delivered to the affected property owners.[[In-content Ad]]