CAMANCHE — During its Tuesday night meeting, the Camanche City Council discussed loans to be used for improvements to the sanitary sewer system.

The meeting began at 6 p.m. with a public hearing on a resolution to enter into a loan agreement for the project. No one from the community attended the hearing. The council members reported receiving no communication about the issue.

This loan would be taken out as bonds from the State Revolving Loan Fund, administered through the Iowa Department of Natural Resources and the Iowa Finance Authority. This loan would be for a total of up to, but not exceeding, $2 million. City Administrator Tom Roth said the SRF is a government program to stimulate the economy. He said there is no commitment to extend the program past 2010. Roth said this program is a good opportunity for the city.

“In talking to our bond counsel, it’s the most attractive alternative out there for borrowing money for water and sewer projects,” said Roth.

The council approved taking out bonds for this loan.

“We know we’re going to need it. We know it’s the cheapest money out there,” said councilman Trevor Willis.

After approving this loan, the council also discussed the possibility of an additional loan. The council proposed a resolution to allow for loans for as much as $800,000 in additional funds if necessary.

“We don’t know if we’ll need this. If the project goes favorably, we won’t need it. And if the project doesn’t go favorably, we might,” said Roth.

The council set a hearing on the resolution for a $800,000 sewer revenue loan and disbursement agreement. The hearing will take place at 6 p.m. Sept. 15.

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