The Town of Columbus is considering seeking a state loan and grant to complete upgrades to its wastewater treatment plant.
The town previously considered seeking a USDA (United States Department of Agriculture) loan and grant, which could take a couple of years to secure. Columbus council members have expressed some concern over the terms of the USDA loan, which would be paid back over 40 years. The state option would be a 20- year loan. The town can still apply for the USDA option if it does not secure state funding.
Columbus council toured the town’s wastewater treatment plant facility last October and returned saying upgrades are urgent. The plant is now 40 years old and has well surpassed its expected life.
“After seeing the plant, I don’t think we have a choice,” said Columbus Mayor Eric McIntyre. “I think if the citizens saw the condition (the plant) is in, they’d understand the decisions we’re making.”
According to W.K. Dickson Engineers, needed wastewater treatment plant upgrades will cost an estimated $2,139,113. In applying for funding, the town is including a total of $3,632,000 to also upgrade the town’s St. Luke’s Hospital pump station and install a new potable water well.
The town agreed Jan. 20 to place on the February agenda a resolution to apply for the loan and grant.
The loan and grant is from the N.C. Clean Water State Revolving Fund, which is funded by the N.C. Department of Environment and Natural Resources (DENR). Columbus could qualify for a HUD (High Unit Cost) grant, also state funded, for part of the project. Tripp said the town has all needed documentation to apply for the loan and grant without any further funding. Columbus has paid $10,000 for a preliminary engineering report for the project and needs another $10,000 to complete the report.
“I think in the short term, it’s the best funding source that’s come about,” said Brian Tripp, with W.K. Dickson, who attended last week’s meeting.
Tripp said the town should have a better chance of obtaining funding more quickly with the state option than the federal option, because the USDA currently has a backlog of projects. Tripp said the town may be looking at two to three fiscal years before the USDA could provide funding. Both the state and federal options include funding partially through a loan and partially through a grant.
Columbus has also considered other options for wastewater treatment in the past couple of years, including transferring its sewage to Tryon for treatment. Upgrading Columbus’ existing facility seems to be the least costly option, according to engineer estimates.
Upgrades to Columbus’ wastewater treatment plant are estimated at $2,139,113, compared to $3,883,866 for capital costs to treat the town’s sewage in Tryon and $5,922,000 to construct a new plant. Annual operating and maintenance costs are estimated to be $217,768 at an updated plant, compared to $670,660 to treat the town’s sewage at Tryon and $212,797 at a new plant.
Columbus council will make its final decision next month whether to apply for the state loan and grant. The application deadline is March 1.