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City receives loan, grant for water plant improvements

Staff reporter

On Monday, Marion city officials finally received the news they had been hoping to hear — the approval of a loan and grant for water treatment plant improvements.

A loan for $1,190,000 and a grant for $500,000 were approved by USDA Rural Development for the necessary improvements to meet EPA guidelines.

The funds also will include implementation of an ozone system as means of purifying the water.

Marion City Commission instructed city administrator David Mayfield to obtain additional information pertaining to the funding of the project, particularly interest rates.

The loan payment will be $64,000 per year, Mayfield said, which will not require an increase to water customers at this time.

The 40-year loan will be provided though either general obligation or revenue bonds at a quoted interest rate of 4.5 percent.

Mayfield also reported the city fire department received a homeland security grant for $6,750 for smoke detectors. The city will provide a 10 percent or $750 matching portion to the project.

The city was not selected for two grants — $22,000 for fire equipment, and $20,000 for air conditioning, heating, and new windows for the museum.

Mayfield said museum improvements will be included in the 2006 budget.

In other business:

— The commission approved a five-year contract with Westar Energy. The new contract will become effective July 2.

— The commission approved action in addressing the property at 201 N. Freeborn as being uninhabitable and in need of improvement or removal.

— Three health insurance providers presented information. Representatives from Blue Cross/Blue Shield, Colonial, and McInnis Group submitted proposals for the commission to consider.

The commission deferred a decision to Monday's meeting.

— Bob Brooks, developer of Marion Assisted Living, may build an addition to the facility for Alzheimer's patients.

Mayfield said the facility was at capacity and expansion was a possibility.

Brooks also was considering the construction of two duplexes on Eisenhower Drive.

— The commission approved the January utility billing and warrants in the amount of $16,648.

— A 10-minute executive session was held for attorney/client privilege. The meeting reconvened with no decisions.

The commission will meet at 4 p.m. Monday in the city building.

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