Bethel approved for full forgiveness on $3.4M in water loan requests

Bethel has been approved for full principal forgiveness on four water infrastructure loan requests totaling $3,379,433, Grant Manager John Sargent reported in a written memo prepared for the July 14 City Council meeting. The forgiveness advances the groundwork needed to eventually pipe water to residents who currently rely on hauled service.

Bethel qualified for full forgiveness on all four requests, covering water treatment plant security, distribution center design, a backwash tank replacement, and a new water haul truck. Sargent noted the review committee "decided to assign 100% forgiveness" to the $1,904,574 distribution center design project. Once design is completed, construction will include a 500,000-gallon water storage tank and a 2,000-square-foot pumphouse to be located on Chief Eddie Hoffman Highway near the Post Office.

A fifth request, covering replacement of approximately 145 failing lift station panels at $3.3 million, received $2 million in forgiveness. Sargent said the city can pursue a reduced-scope project to achieve full forgiveness on that portion. The city must also decide whether to pursue the backwash tank replacement or a piped solution that would flush backwash wastewater directly to the lagoon.

Four loan applications must be completed by July 31, after which the state will issue loan agreements for the fully forgiven projects.