The Putnam County Public Service District is seeking nearly $700,000 from County Commissioners for water storage upgrades.
Mike McNulty, general manager of the public service district, told the Commission of the planned upgrades at its meeting Tuesday, which include replacing the Cow Creek water booster station, installing a natural gas-powered generator, replacing the suction and discharge lines connecting to the Cow Creek station, and replacing more than 6,000 feet of water main.
The PSD offered to contribute $713,000 toward the project and asked the Commission to front $699,000 from its tax-increment financing, or TIF, funds.
Tax-increment financing allows government entities to borrow money at a low interest rate to fund economic development projects, such as infrastructure. Agencies then pay the interest back with a projected increase in property taxes because of improvements to a TIF district.
The state Development Office must approve the use of TIF funds.
But the commissioners, while supportive of the project, are unsure about whether they can provide the amount PSD is requesting.
"The state is in pretty bad shape money wise, and we have to consider that," Commissioner Steve Andes said, noting that the county has already committed "a lot of that [TIF] money" toward the multi-million dollar Hurricane Valley Park project.
McNulty contended that the upgrades are needed to increase reliability of PSD services to Putnam customers. The new water tank at the Cow Creek Station, for example, would hold 350,000 gallons. The existing tank holds 125,000 gallons, McNulty said.
"We've been strengthening our system by adding more storage [and] replacing antiquated lines, McNulty said. In light of the Elk River chemical leak in Charleston in January 2014, McNulty said a major focus has been placed on water security.
"We're revisiting all our source water protection plans now, should anything like that happen," he said.
If the commission can't assist with the upgrades financially, McNulty said the next step would be borrowing loans from the U.S. Department of Agriculture. The PSD would need to increase rates across its entire customer base by about 2 percent, he said, to help pay back the loans.
"I'm all for the project - I'm just concerned about finances," Andes said. "Where will we have to cut back [funding] if we need to?"
Commissioners expect to have an answer to the request by their next meeting.
Also at Tuesday's meeting, Assistant County Manager Jeremy Young announced that Putnam County received more than $75,000 in grants from the state Division of Justice and Community Service. The money helps cover the salaries of existing positions, including a full-time victim advocate in the Putnam County Sheriff's office, as well as a full-time victim liaison and part-time victim liaison in the prosecuting attorney's office.
County Administrator Brian Donat and Mike Moore, business development director at Silling Associates, also announced the beginning of a feasibility study to determine the details for building additional office space near the Putnam County Judicial Building. The plan is due in part because of needs for additional space as well as efforts to consolidate the county's agencies to a centralized location in Winfield.
The study is expected to be completed in the next 30 to 45 days, Moore said.
Reach Elaina Sauber at elaina.sauber@wvgazettemail.com, 304-348-3051 or follow
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