Valley City would not have received several grants from the state to upgrade the water treatment plant, rates would have risen dramatically for Valley City residents.
Total funding for the project, including the cost of the pipeline and discharge lagoon, is $20.8 Million. Of that, the city has a $2.0 Million loan payable at 1% interest for 20 years. The remaining $18.8 Million comes from state water commission grants ($15.4 Million); a $2.6 Million forgivable loan (ARRA stimulus money); and $.8 Million STAG (State Tribal Assistance Grant). The future impact on the water rate payers of Valley City is $3.68/month for the $2.0 Million repayable loan.
But, city administrator Jon Cameron says, if the city had to finance the entire $20.8 Million, at the rate of 3% interest for 20 years, the additional monthly charge for each rate payer would have been $45.63.
This charge would be in addition to the regular monthly usage charge for our water users in Valley City if we would not have received the grants for this project through the efforts of city officials according to Cameron.