Loan approvals for city’s waster system reviewed

The City of Forrest City has received a letter of approval from the Arkansas Department of Agriculture's Natural Resources Commission for an interim loan of $324,800 from the Water Sewer and Solid Waste Fund and a second loan for $1,803,530.80 from the Arkansas Clean Water State Revolving Fund.

However, according to Forrest City Mayor Cedric Williams, the city has not yet signed the paperwork to accept the loans.

"Basically, we applied for loans for improvements in our wastewater department," said Williams. "We received a letter approving us for the two lowinterest loan arrangements that basically states our rates are adequate."

Williams said the $324,800 was sought for improvements such as UV Systems, clarifiers and other things that had reached their life expectancy at the wastewater plant.

"We are hoping with this we can pay for those items and that the interest coming from the bank is enough to help pay notes off on those items," said Williams.

"Some of those things we've already ordered. We are going ahead and accepting the offer on that particular one," said Williams. "It makes sense we can take care of those high-dollar projects with low-interest loans."

Williams said the interest is a little over 1% for the sewer and solid waste loan.

"Right now, we are just in the preliminary. We haven't gone through the entire process of it," said Williams of the funding. "You have to choose some bond people and some different things such as that."

Williams said the city would be deferring the $1,803,530.80 funding.

"Some of that is included within what we received with our sales tax and bond issue," said Williams.

Williams said he would be working with Edward Gregory, director of the city’s water department, to revaluate the loan to see how the city could get the most from the bond issue and the loan.

"It makes sense to supplement both of them to get a lot of those particular things," said Williams.

The second loan was specifically for items such as new wells, smart meters and other things.

"We will probably redo the application to see what make sense from the city's standpoint," said Williams of the clean water funding.

Williams said city officials would know more about when and if projects could begin once paperwork is completed.

Williams said the city and county have “tremendous opportunity” over the next year to take advantage of low-interest rates as well as funding from the American Rescue Plan to help the area.

"Hopefully, when they get everything haggled out about infrastructure, there will be a lot of resources coming to our area that if we take advantage of those resources and be proactive, we can replace some of our old equipment," said

(Continued from Page 1) Williams. "Hopefully, we'll also be able to help our city and county by working together on infrastructure items needed. Forrest City is the key to this entire area.

"If Forrest City grows, Palestine, Madison, Hughes, Colt and everywhere else in the county will also grow," added Williams.