BURNET — A nearly $2 million loan from a state agency will help fund several wastewater-collection system improvements for the city, officials announced July 25.
The city also plans to raise water rates for residents and businesses.
Earlier this month, the Texas Water Development Board approved the $1.9 million loan for fiscal year 2011-2012, which begins Oct. 1.
"The loan is already built into our budget for next year," City Manager David Vaughn said.
The loan is for improvements to three parts of the city's wastewater system that process large inflow amounts, as well as the installation of about 3,400 feet of water mains and repairs, removal or replacement of about 10,000 feet of wastewater line, TWDB officials said.
Funding for the loan comes from the Clean Water State Revolving Fund for Disadvantaged Communities, according to state officials.
Also, the city will pay interest on the loan at a rate about 1 percent less than the market rate of 2.7 percent, Vaughn said.
Work on the improvements is expected to begin next spring or summer, he added.
Also during upcoming months, city officials plan to raise commercial and residential wastewater rates by 62 percent, from $4.28 per $1,000 galloons later this year to $6.94 per 1,000 gallons by 2013, according to city records.
The increase is needed to pay for the city's wastewater plant expansion, as well as more wastewater line replacements required by the Texas Commission on Environmental Quality, Vaughn said.
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