By Billy Stitz
South Dakota Governor Dennis Daugaard announced last Thursday that the state Board of Water and Natural Resources has approved $3.4 million in funds to the City of Colman for their water and sewer projects.
The project, which was set to get under way this year, involves replacing or re-lining 11,000 feet of sanitary pipe as well as 11,000 feet of drinking water pipe on or adjacent to Second Street North. The project also involves the replacement of all the towns water meters and putting in a brand new water tower to replace the existing tower that was originally built in 1922.
2.2 million dollars of the State issued funds for the drinking water project come in the form of loans; while 1.15 million is in principal forgiveness meaning the City will only have loans out on $1.071 million or 48.2% of the water project. The rest of the $3.4 million will come in for the sanitary/storm sewer project.
The money provided by the state is for phase one of the project, which includes piping from just west of the cemetery to the old railroad track by the school.
Both the water and sewer project loans are contingent on the City doing a few things. For the sewer project, the City must adopt a bond resolution and the resolution must become effective. Also, they must establish a surcharge sufficient to provide the required debt coverage.
For the water project, the loans are contingent on three things. First the city must adopt bond resolutions and the resolutions must become effective. Secondly, they must establish a surcharge sufficient enough to provide the required debt coverage. Lastly, they must convert the water meter project to 100% principal forgiveness contingent upon the City closing on the line work/ tower projects.
More information will become available after the next city council meeting on April 8th.