DADE CITY — An expansion of the city's water system that was shelved a few years ago due to lack of funding may see the light of day again, thanks to the federal government stimulus program.
The Dade City Commission on Tuesday evening approved public works director Lennie Naeyaert's request to move forward with an application for a mostly forgivable loan of up to $3 million from the state Department of Environmental Protection.
If approved, the money would go toward about $2.4 million worth of "shovel ready" improvements to the Orange Valley water tank and pump stations off Clinton Avenue.
The city has had to turn away new customers in that area because the water system cannot handle them.
In 2006, the city shelved the improvements because they could not be funded.
The DEP's State Revolving Fund Program has since received additional money from the federal government's stimulus program. Now, the city's project is eligible for a loan forgivable for up to 85 percent of the project cost.
If the city qualifies for the full reimbursement, it may only have to pay about $360,000 for the $2.4 million project.
"We anticipate getting the full forgiveness," Naeyaert said before the meeting.
The city's median income is lower than the state average, he said, which will help in the application process.
"We qualify as a disadvantaged community," he said.
The city will find out in August if it qualifies for the forgivable loan. If approved, the construction would start in December and be completed within a year.
Helen Anne Travis can be reached at htravis@sptimes.com or (813) 435-7312.
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