$1 Million Loan OK’d For Valley View Sewer

A local sewer improvement district will use a $1 million low-interest loan from Arkansas Natural Resources Commission to complete the design work and obtain easements to connect to Prairie Grove’s sewer system.

Washington County Property Owners Improvement District #5 is the owner of a community sewer system that provides service to about 500 customers in Valley View Estates, Walnut Grove Acres and Meadow Sweet subdivisions.

The system was placed in receivership last year with Communities Unlimited because of ongoing problems and violations of state law. Currently, the improvement district is hauling untreated wastewater to Prairie Grove’s sewer plant until it can connect to the system.

Jerry Kopke, Arkansas state coordinator with Communities Unlimited, said the Natural Resources Commission has agreed to allow the sewer improvement district to defer principal payments and interest costs for three years so the district can increase its customer base.

“This should get us the chance to levy bids and get ready to dig,” Kopke said last week.

The Commission approved the loan in an amount up to $1 million at its July 19 meeting in Little Rock.

According to a news release from the commission, the loan will come from the Arkansas Clean Water State Revolving Loan Fund. The loan repayment schedule will not exceed five years and the combined rate and terms of the loan will be determined by the executive director.

Approval is contingent on the property owners district establishing and maintaining a depreciation reserve fund.

Engineering Services Inc., is working on the engineering design to pump untreated wastewater to the city of Prairie Grove.

“I’ve asked them to put it on the front burner with high heat,” Kopke said. “We want them to proceed as quickly as possible.”

Kopke said representatives of Communities Unlimited, the improvement district and city of Prairie Grove are working on a draft contract to outline details to connect to Prairie Grove’s sewer system. When finalized, the contract will have to be approved by Prairie Grove City Council and the improvement district’s commissioners.

Along with design work, Communities Unlimited and the improvement district will identify easements needed for new sewer lines and get those easements signed in writing.

Kopke said the improvement district will seek another loan from the Arkansas Natural Resources Commission when it knows how much construction will cost.

“They are expecting us to come back and talk to them,” Kopke said.