The Gillette City Council has decided to pursue a $20 million loan to improve the city's wastewater treatment plant.
The loan from the State Loan and Investment Board would cover the major improvements needed to keep the wastewater treatment plant running. According to city officials, much of the equipment at the wastewater facility is far beyond its life expectancy. If repairs are not made, the plant could violate state and federal Clean Water Act standards.
City Utilities Director Mike Cole said they will submit the loan application in the first week of March, then top state officials will make a decision on the application in June.
"If they approve the loan, then it's my understanding the $20 million will be available after July 1, and we will use that to move forward to with design and construction for the improvements at the wastewater treatment plant," he said.
Previously, the city considered other ways to fund the project, but ultimately decided this state loan program would be more effective.
"There's several other federal programs, but there's a lot of federal oversight that's involved that really adds costs to the project. With a state loan, there's less oversight and the ability for us just to loan the bare minimum that we need," Cole said.
Cole added with this funding source, payment to the state wouldn't be due until the improvements are finished, which would give the city time slowly raise rates to help support the repayment. He said the loan's term is 20 years.
Raising rates is also on the city's mind in the near future. Cole said in March the city will begin to consider a potential rate increase, though a dollar amount has not been confirmed. Any increase would begin on May 1 and would only come if the city council votes to approve it.
Have a question about this story? Contact the reporter, Catherine Wheeler, at cwheel11@uwyo.edu.
