City receives loans to improve water systems

The city of Lincoln has been busy planning how to better improve Lincoln’s infrastructure, planning how to expand and repair wastewater plants and services. Two extensive projects were chosen.

One project was for sewer collection expansion, and the other was wastewater treatment facilities upgrades, said Chad Blahak, the city stimulus coordinator.

The sewer expansion project will reach into Stevens Creek Basin and North Lincoln, to provide for future development in the area. North Lincoln is also the site of the saline wetlands and home to an endangered species, but Brian McManus, public information officer, said the expansion would not harm the wetlands.

"We are providing support to these projects because we believe they are responsible, well-planned improvements that will be protective of our environment," McManus said.

The upgrades and improvements will be made to the Theresa Street and Northeast water treatment plants, McManus said.

"The upgrades and improvements … will help to ensure that Lincoln continues to responsibly deal with the wastewater produced throughout the city," he said.

Nebraska Department of Environmental Quality, or NDEQ, receives and administers loans every year, Blahak said. And $10 million administered by the NDEQ came from federal stimulus funds for Lincoln.

The projects received $5 million from the American Recovery and Reinvestment Act and $5 million from the Clean Water State Revolving Loan funds.

The loans provided come in three different categories: $1.25 million is a grant and does not need to be repaid, another $1.25 million is a no-interest loan, and a $2.5 million loan along with another $5 million loan that has a 2 percent interest rate.

"Normal interest loans are upward of 4 percent," Blahak said. "Between grants and loans, this will minimize future tax increases."

The lower or no-interest rates will save the city about $280,000 a year, he said.

Along with lessening tax hikes, the projects are expected to provide jobs by creating or maintaining jobs for contractors, Blahak said.

But local contractors will not be guaranteed employment. A competitive bid for the projects will take place, and the best deal will take the job.

The projects, however, would be nowhere without the public’s involvement. In the early stages about five years ago, Lincoln conducted extensive outreach, McManus said. The city has posted newsletters, established notice boards and held public meetings in an effort to involve interested citizens.

"Obviously, it makes sense to seek public involvement at the front end of the process, to make sure your ideas make good sense to the people you serve," McManus said.

The NDEQ also welcomed comments from Nebraska Game and Parks, the Environmental Protection Agency and other environmental agencies, McManus said.

"After a rigorous review and ranking process, we concluded — and agreed — that these projects were top priorities and should receive this combination of federal and state loan support," he said.

nicolestaton@dailynebraskan.com