LANCASTER — This city may soon have new monetary support and rate information to consider when deciding how solve pending water plant capacity issues.
After officials complete some formalities this month, Lancaster will secure a $2.5 million Economic Development Administration grant to build a new water plant, City Attorney Leonard Smith said.
The EDA funds, which totaled about $34 million, were available to areas in Kentucky and Tennessee declared in states of disaster during May 2010 flooding. Lancaster is eligible because Garrard County was classified as one of these locations, Economic Development Director Nathan Mick said.
The grant is the first significant progress the City Council has made since passing a resolution in August expressing its desire to continue with plans to build a new $12-million water treatment and distribution plant. Alternatives include buying water from Danville or selling the water system to Kentucky American Water.
However, the city may soon have more accurate rate information with which to assess its three options.
Donna Powell, vice chairwoman of the Bluegrass Water Supply Commission and special assistant to Garrard Judge-Executive John Wilson, told the City Council on Monday the BWSC will work with the Kentucky Infrastructure Authority to fund an objective cost of service study for Lancaster, the Garrard County Water Association and Danville. The study would cost between $20,000 and $35,000 and explore potential rate increases for each scenario.