Greenfield City Council considers funding for water line extension

     The Greenfield City Council is considering which manner of funding to pursue regarding a water line extension project on North/North Eighth Street. 

Nathan Davis, a development special with the Rural Community Assistance Program (RCAP), which assists communities with populations of less than 10,000 on securing funding for and developing water and sewer projects, addressed council on the options and presented them with two cost scenarios. 

The cost of the project, Davis said, is $373,277 for the construction, and $37,327 for "contingency," making the total cost of the project $410,604.

The first funding scenario is regarding a loan from the Ohio Environmental Protection Agency that the city has already been approved for. The OEPA loan comes with 20-percent "loan forgiveness" that the city does not have the pay, and the city must pay the remaining 80 percent. The loan would be for $335,949 at 2-percent interest. The 20-percent "loan forgiveness" is worth an estimated $74,655. The annual payment would be $20,546, at a total cost of debt repayment at $616,366. If the costs were passed on to consumers, it would add 86 cents to water rates each month, according to Davis. 

The second scenario was regarding a grant/loan through the Ohio Public Works Council, which the city is in the process of applying for and not guaranteed to receive. The $205,302 loan would be at 0-percent interest, which would be coupled with an OPWC grant in the same amount. The payment would be $6,843, for a cost of total debt repayment at $205,302. If the costs were passed on to consumers, it would add 29 cents to water rates each month, according to Davis. 

Council members expressed concern that the option with the OEPA would cost the city approximately $400,000 more than the OPWC option. Davis said that essentially the city had a choice between guaranteed funds that would cost more, or a cheaper option that is not guaranteed. Davis said that while the OEPS may offer a grant/loan next year, it is not certain.

Davis explained that the OPWC funds are awarded through regions, and each county has a committee that ranks the projects requesting funds. The committee in Highland County is chaired by county engineer Dean Otworth. In order to have a good chance of receiving the funding, Davis said Greenfield would need to receive the county's number one or number two ranking. He suggested the city speak to Otworth to see what other municipalities in Highland County are requesting funds, and what the city's changes might be in obtaining a high ranking. 

City manager Betty Bishop said she would speak to Otworth and report back to council at the next meeting, scheduled for Aug. 6.