Funding for the $14.8-million Phase 3 of the Perrysburg wastewater treatment plant expansion is expected to be determined on Tuesday by the City Council.
The least expensive solution would be using a U.S. Water Pollution Control Loan. The federal loan would have a 2.59 percent interest rate to pay for the needed $14,777,000. It would be a 20-year loan with twice a year payments of $484,536. Council member Todd Grayson has a problem with using this loan because it is borrowing taxpayers money from throughout the country instead of paying for it within Perrysburg.
"I think it is our plant, so it should be taken out of our money," Mr. Grayson said. "Not some fake subsidy where we are stealing other people's money that won't use our treatment plant."
City Administrator Bridgette Kabat recommends either the federal loan or a loan from Ohio Water Development Authority, as both have low interest rates.
"We recommend either loan program because it is the best interest rate for our citizens," Ms. Kabat said. "It will save the taxpayers a considerable amount of money. Our goal is to give our residents the best rate we can."
The Phase 3 expansion includes three aeration grit tanks, two final clarifiers, a secondary sludge control building, two blowers, two effluent pumps, and a effluent pump meter. The city of Perrysburg wants to begin construction in 2014 after awarding a contract in the next few months.
Mr. Grayson would like to fund the project with general obligation bonds, which would have an interest rate of about 3.75 percent. That would cost $2,184,889 more than the Water Pollution Control Loan.
"[The 3.75 percent interest rate] is a fantastic deal compared to years past," Mr. Grayson said. "But it will be a tough sell to the council."
A possible compromise, he said, is to use a Ohio Water Development Authority loan at 2.79 percent interest rate. While he still wouldn't be happy with others paying for something they wouldn't use, at least it would only be taxpayers in Ohio paying for the Perrysburg treatment plant.
Also before the council meeting Tuesday, there will be a 5:30 p.m. open forum and discussion for Fifth Street Pub and its surrounding neighbors about its patio's use.