No Funds on Tap for Water Plant
By ANTHONY GAYNOR, Staff WriterThe Elkins Water Committee is still seeking funding for construction of its approximate $26 million water treatment plant and distribution system project. At least one city leader suggests a water rate increase could be the solution.
The engineering work on the project will continue, but until funding is found no work can begin.
"We talked to RUS (U.S. Department of Agriculture Rural Utility Service) on Monday and they do not have an established budget," Chapman Technical Group Engineer Kennon Chambers told the committee on Tuesday. "They are hoping for an economic stimulus package that will allow them to give funding."
Chambers said he does not know if the funding would be in the form of a grant or loan. However, Elkins City Clerk Phil Graziani said the city's water rates are not high enough to receive zero interest loan funding or grant money.
"The rates would have to equal 1.5 percent of the median household income to qualify for grants and low-interest monies," Graziani said.
Water Committee Chairman Councilman Duke Talbott, 4th Ward, said a stimulus package is a good possibility and he wants to get the water distribution system upgrades to a point where work could begin if funding becomes available.
Graziani said when the discussion of the project began with the previous water committee, he estimated the city would have to quadruple water rates to pay for the entire project. Talbott disagrees and said it could not be projected because of the recession.
Graziani said the rates would be in line for grant funding and low-interest loans with a water rate increase.
"Should we start working on that now?" Talbott asked Graziani.
Graziani responded, "We could start the process now and have it ready by March 3."
No decision was made to begin the process of a rate increase.
"A new water plant is critical," Talbott said.
Councilman Tom Hensil, 2nd Ward, said until the city knows how much money it will need for the plant and a raw water line to the plant, it would not know how much could be spent on the distribution system.
