Water system votes down loan to finish projectMembers of the Lewis & Clark Rural Water System board on Thursday voted down a proposal to borrow $16 million to finish the pipeline to Luverne, Minn.
By: Associated Press,
TEA, S.D. (AP) — Members of the Lewis & Clark Rural Water System board on Thursday voted down a proposal to borrow $16 million to finish the pipeline to Luverne, Minn.
The vote was five members in favor of the loan and 15 members against, KELO television reported.
Chad Huwe, the Sioux Falls representative on the board, said he voted against the loan in part because it would raise rates for Sioux Falls customers.
The water system was supposed to be distributing potable Missouri River water to 300,000 people in 20 member communities in South Dakota, Minnesota and Iowa by 2005, but reductions in federal funding have slowed the project.
Nine of the 20 members still are without service, even though all members and the three states have prepaid their share of the cost.
Executive director Troy Larson said the three states and 20 members have paid their cost share, which is nearly $154 million. The federal government has paid $212 of its cost share, which is about 50 percent.
Larson said the board can continue to "wait and see" if future federal funding increases so construction can resume or initiate another capital call loan in the summer of 2014.
Information from: KELO-TV, http://www.keloland.com
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