Borrowing Money to Build Sewers, Supposedly to Save Money

Town Council voted, 8-1, with Sam Found
dissenting, to allow Town Treasurer Roger
Mitchell Jr. to apply for a loan of $8,760,000 for
wastewater capital improvements. The loan,
acceptance of which will still have to be
approved by Council, would come from the
Virginia Revolving Loan Fund and involve highly
favorable terms (few costs and an approximately
3 percent interest rate).

The deadline for applying for the loan is July
14. For this reason, more than one council
member indicated that they would vote to
approve applying for the loan but would like to
study the matter more carefully during the next
month.
Mitchell said paying back the loan would
require raising rates on sewer service 44 to 45
percent or taking money from another source. In
response to questions from Found, Mitchell said
there is about $450,000 in reserve in the
wastewater budget, and about $300,000 in water.
Mayor Waller Jones asked Environ-mental
Services Director Clarke Wallcraft what the
money would accomplish.

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