You are the owner of this article.
You have permission to edit this article.

Pell City Council pursuing loans for water, sewer projects

Pell City administration 2020-2024 teaser

The new Pell City administration was sworn in Monday, Nov. 2, 2020. The mayor is Bill Pruitt. The council includes Jay Jenkins, Blaine Henderson, Jason Mitcham, Jud Alverson and Ivi McDaniel.

PELL CITY -- The Pell City Council has approved two preliminary applications to the Alabama Department of Environmental Management’s Revolving Loan Fund. 

The pre-applications, approved during the council’s Monday meeting, are for funding to help improve sewer and water infrastructure for several parts of the city. 

The projects included in the city’s pre-applications include a new sewer lift station and sewer main near Cogswell Avenue in the Eden community, a waterline to connect a well to the Woodhill Water Tank, and the rehabilitation of water and sewer lines in the Avondale Mill Village.

City Manager Brian Muenger said the projects are being submitted to the loan program due to the possibility of principal forgiveness for the loan. Muenger said the Revolving Loan Fund offers principal forgiveness for up to $500,000 or 50% of the principle of the loan, whichever is applicable. Beyond this, the loans are at a 20-year fixed rate of 2.2 percent interest. 

Muenger said because these are only pre-applications, the city has no obligation to accept the loan if they do not qualify for principal forgiveness.

The sewer related projects, submitted to the Clean Water State Revolving Fund, have a requested assistance amount of $7,025,219. This would include the Eden sewer improvements and the rehabilitation of sewer lines in the Mill Village.

The second pre-application, to the Drinking Water State Revolving Fund, covers the new water line to the Woodhill tank and the waterline improvements in the Mill Village. The request for these projects is $4,006,118.

Utilities Manager James Hadaway told the council each of these projects, while large projects, will need to be addressed at some point in the future. Hadaway said the Mill Village sewer system is mostly made of terracotta pipes that are beginning to be affected by nearby tree roots.

Muenger said all of the projects are already part of the city’s 10-year plan improvements. He said if they are not funded by the loan program, the municipality will continue to look at funding options.

In other matters, the council:

  • Approved the initial payment for the city’s workers compensation policy in the amount of $135,749, at a $50,000 deductible;

  • Approved a final plat for an outparcel of Walmart’s current plat. The plat is in the store parking lot and will be used for a new restaurant;

  • Approved a special use permit for the boat launch at Lakeside Park that will require all fishing tournaments to pay a $5 boat fee per boat while using the boat launch; and 

  • Approved an agreement with Pyro Shows of Alabama for the city’s annual July 4 fireworks show.

Taylor Mitchell, Daily Home reporter covering Pell City.