Plans to build a new water tower are temporarily on hold.
During Campbellsville City Council's regular meeting Monday, Mayor Tony Young told Council members that the city will not receive the $1 million state Community Development Block Grant it had applied for. And the reason why left Young and a few council members upset.
"[Department for Local Government Commissioner Tony Wilder] told me we're not going to get it. He said our water rates were too low," Young said.
He said Wilder told him that communities with a combined base rate higher than $36 for water and sewer get top priority for state grants.
Campbellsville's combined base rate is $32.50.
He said he doesn't want to raise rates.
"There is absolutely no way that I am for raising the rates," he said.
Young said Wilder and Gov. Steve Beshear told him to reapply for the grant. Young said he plans to reapply.
In the meantime, work to build the new tower is on hold. This being a election year for several state offices, including the governor's office, Young hopes to hear whether the city will receive the grant by October.
Construction would likely start in the spring and will take about 16 months.
The 1-million-gallon water tank would replace towers at Wilson Heights and near Clarcor. It would be built near the site at Clarcor. The two tanks the new one would replace have a combined capacity of just over 610,500 gallons.
The new tower would be 40 feet taller, said David Bowles of Monarch Engineering, which would increase water pressure by about 15 pounds.
The two old towers were cited as being "beyond repair" by the state, according to Bowles. While the state of the towers isn't affecting water quality, Bowles said, the city must replace them.
The total project cost is $2.3 million. Initial plans called for the project to be funded by the $1 million CDBG, a $250,000 Kentucky General Assembly grant and a $1.1 million U.S. Department of Agriculture grant.
While the city will have to reapply for the CDBG, the General Assembly grant and USDA loan are available now. Bowles said that if the city doesn't get the CDBG, USDA officials have said they would loan the entire amount. Under that scenario, the city would repay the 40-year loan at approximately $9,050 a month.
Young said the city could afford the payments if the new CDBG is not awarded.
No vote was taken. Council members Patti Phillips and Terry Keltner were absent.
The City's June revenue totals $729,171.84 - lower than the $1.2 million budgeted. Year-to-date revenue totals $8.9 million and year-to-date budgeted revenue is $8.7 million.
June expenses were $944,523.13 - lower than the $1.1 million budgeted. Year-to-date expenses were $9 million. Year-to-date budgeted expenses were $8.7 million.
Young said the city's June budgeted revenue and expenses are higher than the norm because of grants, including the a grant for The Healing Place. This grant is simply a pass through.
Campbellsville Water Co.'s June revenue is $401,535.25. June budgeted revenue was $394,251.85. Year-to-date revenue is $4.8 million, slightly above the $4.7 million budgeted.
The Water Co.'s June expenses totaled $385,566.27, lower than the $408,188.82 budgeted. Year-to-date expenses are $4.9 million, slightly higher than the $4.8 million budgeted.
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