Roanoke Times
Copyright (c) 1995, Landmark Communications, Inc.
DATE: THURSDAY, June 24, 1993 TAG: 9306240195
SECTION: CURRENT PAGE: NRV-3 EDITION: NEW RIVER VALLEY
SOURCE: PAUL DELLINGER STAFF WRITER
DATELINE: PULASKI LENGTH: Medium
Town officials will meet with the top firms for further information on how the study would be conducted and report to council on specifics and costs. Council then will decide whether to start negotiating with the firms to do the study.
Assistant Town Manager Rob Lyons told council, meeting Tuesday morning as the Finance Committee, that the study cost is estimated at $30,000, but that figure is not certain.
Once the decision is made for a study, he said, it would be three months before an interim report could be made on rate recommendations.
A final report would take four to six months and would make recommendations on rates and water system needs covering the next three to five years.
Town officials have met with Farmers Home Administration representative Travis Jackson on the possibility of an FmHA loan to pay for water improvements, some of which are required under a past town annexation agreement.
They learned there would be no problem in securing a 5 percent simple-interest 40-year term loan within 90 days of application, and that principal payments could even be deferred for the first two years.
Lyons noted that if council decides to have a water study, the various projects required or needed because of service or low-pressure problems could be considered as part of the study.
In any case, before seeking an FmHA loan, council must decide which projects it wants to finance that way. Another meeting will be held to discuss the various projects in more detail.
"Let's look at the whole thing," said Finance Committee Chairman W.H. "Rocky" Schrader.
An FmHA loan also could be applied to improvements and rehabilitation work on the town's Gatewood and Hogan Dams. No cost estimate is available on those yet.
The Finance Committee will hold another budget session Monday at 9 a.m.
by CNB