Wheeler secures loans and grants of $5 million for sewer and water projects
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by LeAnn R. Ralph
WHEELER — It is all but about 98 percent certain that loans and grants totaling a little more than $5 million are coming to Wheeler for sewer and water projects.
The Wheeler Village Board reviewed United States Department of Agriculture loans and grants awarded to the village at the August 7 meeting.
For the project of drilling a new village well and building a wellhouse, at a total cost of $2.53 million, Wheeler has received a loan of $648,000 from USDA, an $884,000 grant from USDA and $1 million in Community Development Block Grant (CDBG) funding.
Regulations require that Wheeler has two wells and two well houses, but the village has operated with only one municipal well for decades.
The sewer project, which will make improvements at the wastewater treatment lagoons and at the village’s lift station, also is expected to cost $2.53 million.
For the sewer project, the village has received a USDA loan of $741,000, a USDA grant for $1.265 million, $500,000 in CDBG funds and $27,000 in funds from the Village of Wheeler.
It is a done deal unless, within the next 60 days, USDA finds some problem with title or maps, said Don Knutson, village clerk-treasurer.
The Wheeler Village Board plans to wait until it is all 100 percent certain before moving forward with any work, he said.
The USDA loans would carry an interest rate of 2.375 percent over 40 years, with annual payments for the water project of $25,279 and annual payments for the sewer project of $28,907.
The last work that was done on the sewer system was in the early 1990s, Knutson said.
The Village of Wheeler received the letter of approval from USDA on July 31, literally the last day possible for the approval of loans and grants, he said.
The grants will cover 60 percent of the cost of the work, and the village’s engineers say that is excellent grant coverage, Knutson said.
As is generally the case, the entire process has taken much longer than the Wheeler Village Board anticipated, he said.
The CDBG funds were awarded last year, Knutson noted.
The village has already advertised for bids for the well project and received one proposal last fall, he said.
If the contractor will still honor the bid, work could begin on the new well in October or November, Knutson said.
The new well would need to be tested for volume and water pressure first before it could go on-line to provide water for the village, he noted.
Rob Hakanson serves as Wheeler village president, and Lillie Milune and Ryan Marten serve as village trustees.
