Arkville Water District loan to be repaid early
A long-term loan for the Arkville Water District will be paid off seven years early through utilization of a fund balance.
The Middletown Town Board, which oversees the district, voted last week to apply district funds to pay $55,000 remaining on a long-term loan.
Water Superintendent Terry Johnson reported to the board in March that the Arkville Water District account has more than $77,000. The board voted to expend funds from this account to pay off the remaining debt.
The balance owed stems from an Arkville Water District loan originating in 1986 when a major system upgrade was implemented.
Supervisor Len Utter and the board agreed that it made fiscal sense to eliminate the existing loan payments because a new loan is being secured for additional system work.
The current project, which will get underway this season, will include drilling a new primary well (and utilizing the current well for back-up purposes). Arkville does not have a back-up water supply.
Also included in the project will be replacement of water distribution mains along Route 28, the elimination of two dead-ends in the distribution system (improving overall system performance) and installation of new water meters.
Last December, after a series of public meetings, the town board voted to authorize $1,787,375 in serial bonds to fund this project.
Grants from USDA Rural Development and the Governor’s Office for Small Cities will provide slightly more than $1.3 million to offset project costs. The balance, about $475,000, will be paid by district taxpayers and bonded over a 40-year period.
Phase one of the construction will consist of construction of the new well and pump house on acreage behind the Delaware & Ulster Railroad. The project’s second phase will include water main replacement along Route 28, plus installation of curb stops and new water meters.
The construction will update the oldest portions of the system, not the sections that were improved in the 1980s, Mr. Johnson explained at a public meeting on the project.