The Town of Paonia approved the first payment on the 20-year loan for the new 2-million gallon water filtration system project. The amount paid on Aug. 1 was $21,218.91.
Funding for the water project comes from a leveraged loan with a bond to not exceed $4.45 million. The actual bond amount for the town’s water project is for $2.9 million. The loan’s interest is less than three percent, between 2.6 to 2.7 percent.
The remaining principle forgiveness loan is with the Colorado Water Resources and Power Development Authority (CWRPDA). It is a Drinking Water Revolving Fund Direct Loan.
The principal forgiveness by CWRPDA and the Town of Paonia Water and Sewer Enterprise is for $847,920. “These funds do not hit our general fund,” Barbara Peterson, town clerk, said.
The total cost for the entire project is $5.7 million.
The other funding includes a $1 million Energy Impact Assistance grant from the Department of Local Affairs.
Gunnison Basin Roundtable gave the Town of Paonia $75,000. That amount was rolled into the Colorado Water Conservation Board Grant that totaled $385,000.
Current estimates are that the project should be completed by May 2015.