Meadowlakes POA to loan city money for water tank
MEADOWLAKES — City leaders don’t have to look any further than their own community for a loan to build a new ground-level water storage tank, officials say.
City Council members July 10 approved drawing up a contract for a 7-year, low-interest loan from the Meadowlakes Property Owners Association worth $300,000.
“They have the money to loan. We’re paying them the interest,” said Mayor Don Williams. “They represent the same people we do; therefore, the money stays within our own city. They gave us a good rate, so why not?”
POA officials said the goals of the city and their organization are the same — to maintain the quality of life in Meadowlakes.
“The POA through the years has been able to accumulate a balance (nearly $600,000) that’s available,” POA President Roy Belcher said. “Rather than the city go outside at a higher cost, they’ve come to us and we’ve agreed to give them the loan.”
The POA will charge 2.5 percent interest, which is better than most financial institutions, Williams said.
“Through a bank, we would pay probably more than 4 percent,” Williams said.
City officials said the new tank is needed because an existing 12-year-old tank has limited storage capacity.
The city has two storage receptacles— an elevated 200,000-gallon water tank located in the heart of the bedroom community and one 250,000-gallon ground-level water tank on City Hall property.
Estimates for constructing an additional ground-level tank could reach about $350,000, according to Southwest Engineers Inc.
The POA, who owns the city’s streets, typically dedicates funds to maintain the community’s roadways.
Other projects involving POA assistance include swimming pool upgrades and funding assistance for loans involving the city’s Public Works Department, officials said.
“We contract with them to do work around the city, too,” Williams said. “It’s just a good relationship. We try to work together.”