The county industrial authority plans to open bids for the Hwy. 29 North water line project on Oct. 1.
IDA executive director Marvin White said the board, depending on bid prices, may have to seek an additional $200,000 - $300,000 in additional funding from the Georgia Environmental Finance Authority (GEFA) to complete the project.
White explained that prices for ductile iron pipe have increased dramatically. White noted that on previous projects of this size, the IDA was able to pay for the pipe’s purchase and installation for less than the cost of just the pipe itself in today’s market.
The board voted last month to accept a $1.5 million loan/grant package to install water lines along Hwy. 29 North from Danielsville to the Franklin County line.
White said the Authority hopes to pick up 75 to 100 water customers along this route. More importantly, this line will connect the county with neighboring Franklin County on two fronts; Madison County is already connected to the city of Royston with the Harrison water line loop on Hwy. 281.
The GEFA Drinking Water State Revolving Fund loan/grant package includes a $450,000 “forgivable loan” (grant). The IDA has agreed to repay the $1,050,000 balance over 20 years at an interest rate of 2.13 percent.
White said the IDA was approved for up to $1.5 million in loan money, so should be able to obtain the additional funding from GEFA, if necessary.
In other business, the IDA billed 844 water customers in August, who used 7,928,180 gallons of water.