Area sewer project gets grant, but delays may cause loss of financing

A federal grant announced last week completed the financing package for the Allenville-Whitewater sewer project but deadlines for using money awarded last year could upset local plans.

The Missouri Department of Economic Development awarded a $465,000 Community Development Block Grant to Allenville for the sewer system intended to replace septic systems in the southwest Cape Girardeau County community. The money is in addition to a $1.6 million financing package from the U.S. Department of Agriculture awarded in April 2009 that included a $1.06 million grant and a $574,000 loan.

With current cost estimates at about $2.1 million, it appears that the money is all in hand, said Erie Foster, a member of the Whitewater-Allenville Cooperative Combined Waterworks and Sewage System board. But because the earlier federal award came from stimulus money designated for "shovel-ready projects," Foster worries that the project could be left unfunded.

"That is where we are running into a whole lot of problems," Foster said. "We have an April deadline and we are having problems ironing out all the details on the sewer plant location."

Voters in Allenville and Whitewater approved a $950,000 bond issue in April 2008 to finance construction. Once construction begins, work is expected to be completed in 12 to 18 months.

Before construction begins, a detailed analysis must be completed to determine what it will cost each household for sewer services, Foster said. When the bonds were approved, preliminary estimates put the cost at a minimum of $25 per month. If that minimum charge goes much higher, Foster said, many residents, who are generally low-to-moderate income, could not afford it.

"If it is ridiculous, we don't have to do this project," he said. "It has got to be affordable."

rkeller@semissourian.com

388-3642

Pertinent addresses:

Allenville, Mo.

Whitewater, Mo.