At an Oct. 25 Town of Cedar Bluff Utility Board meeting and town council work session, board and council members explored the possibility of United States Department of Agriculture grants for a proposed sewerage project, a new police department building and a new volunteer fire department truck.

The utility board, which wishes to upgrade its sewerage plant and install sewerage lines to County Rd. 44, appears to be eligible for a 45 percent USDA grant or a 55 percent USDA loan.

On hand was USDA representative Dan Anderson, who informed the council on different types of loans, the procedures for loan application and the feasibility of the municipality being approved for said loans.



“We fund all municipal loans except for recreational,” said Anderson. “We can make loans to tax-exempt and non-profit entities such as your utility board. We also can loan money for the construction of civic centers.”

Board member Ethel Sprouse noted that although Cedar Bluff plans on eventually erasing its debts, there is no guarantee that the municipality will remain debt-free.

“Being in debt does make you more eligible for grant money,” said Anderson. “We don’t do re-financing. We have to do a complete investigation of your financial status and determine if you can or cannot afford the set interest rate. You’re not required to match any one grant, but most of these grants are competitive. If you match some money with a grant, you’d earn more points toward being awarded that grant. The more money you put into a grant, the more the odds increase in your favor of being awarded that grant. The government would rather go into a partnership with a town rather that fund a grant entirely.”



Anderson noted that the ongoing federal investigation into the Town of Cedar Bluff should not affect the status of a grant application, providing that said investigation involves individuals only.

“For water and sewer grant applications, you have to hire an engineer to prepare a preliminary report,” said Anderson. “On applications for a police department building or fire department vehicle, you can deal directly with us.

“It all comes down to what you can afford to repay on 4.25 percent interest over a 30-year note. The good thing about water and sewer projects is that these projects are good revenue producers that pay for themselves over time.”

Sprouse pointed out that a proposed public/private sewer project involving the County Rd. 44 area is a unique opportunity to assist in the cleanup of Weiss Lake. Sprouse added that providing sewer service to this area would also enhance land values and allow the utility board to serve more customers. Sprouse further noted that the more customers the utility board serves, the lower the board will be able to keep its sewer service rates