The Resaca Town Council approved a USDA revised grant and loan offer for their sewer project during a special called meeting on Wednesday. USDA Area Representative Tammy Decker attended the meeting and presented details on how the project – which would bring sewer systems to Resaca – could be funded.
According to Decker, the USDA would offer the town a subsequent loan for $313,000 and a subsequent grant for $402,000. The total cost of the project, including all financial sources, is around $3.5 million.
While this loan and grant will help cover the cost of the sewer project, this was not the first step of negotiation between the town and the USDA. In the summer of 2015, the USDA approved an initial loan of $674,000 and an initial grant of $1,882,000 for this new sewer system.
“We put it out for bid and as everything has gotten more expensive over time,” bids returned were significantly higher than the original project budget called for, said Town Attorney Brandon Bowen. In October, council members approved a request for more money from the USDA due to the increased prices tags on bids.
The initial loan offered by the USDA will have a 2.125 percent interest rate, while the subsequent loan must be repaid with 2.375 percent interest, and both of these loans are scheduled to be repaid over the next 40 years.
Once the council approved the subsequent loan and grant proposal, Mayor Samuel Allen signed the necessary forms in the presence of council members, Decker and Bowen. These forms will be reported back to the USDA by Decker within the week.