"Learn about the Grant (CDBG) for the Sewer..." ________________________________________________
What is the CDBG?
CDBG stands for Community Development Block Grant. The CDBG program is a federally funded Housing and Urban Development(HUD) grant program that exists to help fund housing, public infrastructure and fire protection needs for small cities.
To be eligible for the federal grant Pegram must meet one of three National Objectives:
1.The grant money would principally benefit persons of low and moderate income
2. Elimination and prevention of slums and blight
3. Elimination of conditions detrimental to health, safety, or public welfare.
If this is a grant, then it’s free money, correct?
Yes and no. The grant requires that the town receiving the grant fund a portion of the cost. In our case Pegram’s Sewer Enterprise Fund, which is funded by users of the system, will be responsible for only 26% of the total cost of projects. The grant will pay for the remaining 74% of the projects. While it’s not completely free the result is that necessary maintenance to the sewer comes 74% cheaper than it would have without the grant.
How much is the grant worth and how much will it cost Pegram?
The total cost of the maintenance and upgrades that need to be done is between $250,000 and $300,000. The Sewer Fund will be responsible for 26% of that cost or between $65,000 and $78,000.
I thought our sewer rates were increasing because the Sewer Fund didn’t have enough money. If that is the case, how can we afford the $65,000 to $78,000?
The State makes available to municipalities what they call a Revolving Loan. We would apply for one of these Loans from the state to cover our portion of the grant. These loans are typically 15-year notes at 4% interest. This would spread the cost out and make it feasible for us to pay for our part of the grant.
If we get the grant, how will that effect my sewer bill?
It’s difficult to say that the CDBG will lower your sewer rates anytime in the immediate future. However it will have a stabilizing effect on the Sewer Fund and therefore the fees you pay.
The Sewer Fund is directly funded by the users of the sewer through usage fees and ready-to-serve fees. How that money is managed directly affects the rates you pay. If user fees aren’t generating enough money to pay for upkeep and maintenance, rates have to be increased. By the same token if user fees are generating too much money, the rates get lowered. By using federal money to pay for things that we would otherwise have to pay for out of the Sewer Fund we lessen the burden on user fees to generate the needed money for these repairs and upgrades.
What will the grant money be used for?
Much needed maintenance and upgrades to the sewer system. Components of the system like control panels, pumps, and filters need replacing because they are worn or faulty. Our drip irrigation field is in need of clean out and repair.
Additionally the grant would pay for an expansion of our current drip irrigation field. This would allow us to increase the volume of waste water we are able to treat.
Are these maintenance and upgrades necessary?
Yes. The items the grant would cover are necessary. All of the projects need to be completed within the next two years.
Are we guaranteed to get the grant?
No. Just because we apply for the grant does not mean that we will get it. HUD, the federal agency that decides who is awarded grant money, looks at many factors. Communities that can demonstrate a greater need for the money receive priority.
Why do we have to fill out surveys?
A large part of whether HUD decides to award Pegram the CDBG money is based on how badly HUD thinks Pegram needs the money relative to all of the other communities that are also applying for the same CDBG money. That is where the surveys come into play. They help show HUD how the families in Pegram would be affected if they were asked to fund 100% of public infrastructure projects through user fees. If we were all making a million dollars a year an increase in sewer fees wouldn’t be a big deal. But since most of us probably aren’t, the fees you pay to fund the operations of the sewer have a significant impact in your personal finances.
When will we get the surveys?
The surveys will be mailed and should be at homes beginning December 1st.
I’m uncomfortable sharing the information you are asking for. Who will see this information and how will it be used?
The Town takes your privacy very seriously. The only people who will see this information is the agency helping us write and prepare the grant, Community Development Partners, LLC. Surveys may be mailed directly to their offices or dropped of at City Hall in a sealed envelope. No one from the town will be viewing the information you provide on the survey.
What happens to the information I provide on the survey?
It will be entered into a spreadsheet that will be used to generate tables and a map that will accompany our application for the grant. Information specific to your family is not public record and will never be made public.
Didn’t we apply for the same CDBG grant a few years ago and weren’t we asked to fill out surveys then too?
Yes and yes. In 2006 the Town of Pegram initiated the application process for the same CDGB grant we are applying for now. We were unable to complete that application because we didn’t have enough responses to the surveys that were sent out.
Who is the Community Development Partners, LLC and why are they working on this grant.
Community Development Partners, LLC (CDP) has a staff of five Project Managers and two technical support personnel who have extensive experience in administering Community Development Block Grant projects. CDP has worked with Pegram in 2006 when we initiated the process of applying for the same grant. Their expertise is critical in our ability to apply for the grant.
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