The Washington County Property Owners Improvement District No. 5 will get a loan for operating costs of the sewer plant that has had years of problems with overflows, broken equipment and failure to submit required reports.
The district's sewer plant serves the Valley View Estates subdivision of Farmington and includes two storage ponds and an irrigation system for the Valley View golf course.
Up to $386,250 of Arkansas Natural Resources Commission loan money will go to the improvement district for sewer operating costs. The improvement district, which is in receivership, has had sewage overflows and no reserve funds or money left in the bank, said Jerry Kopke, state coordinator of the court-appointed receiver Communities Unlimited.
The loan is for up to 10 years at 2.75 percent interest, according to recommendations submitted to the commission's board.
The funds also will expand the sewer plant's operation into a couple of dozen more homes, Kopke said.
The Arkansas Natural Resources Commission board approved the loan for the district without dissent on Jan. 18. Commission member Jerry Hunton, a Washington County resident and former county judge, abstained.
The commission's board approved up to $686,250 in loans to two sewer districts and up to $235,870 in grants to five water and sewer districts at the meeting.
In addition to the $386,250 in Washington County approved from the Water, Sewer and Solid Waste Fund, the commission's board approved a loan of up to $300,000 from the Clean Water State Revolving Fund for Lockesburg to replace sewer lines. That loan is on top of funds previously approved for the city.
The commission's board also approved Lepanto's request to use about $280,000 raised in taxes to fix sewer lines that are backing up. The money was originally earmarked to pay back a commission water loan.
The board approved turning a loan of up to $118,450 to the Ozark Acres Water Association into a grant after staff members said the association couldn't pay it back because of a declining number of customers and continued water-system problems.
Metro on 01/29/2017