City shrinks annual payments by adding $5.8 million to life of sewer loan.
The city of Akron is taking out its first 45-year loan to spread the “unaffordability” of a $1.4 billion sewer project for generations to come.
Akron City Council’s budget and finance committee gave a favorable recommendation Monday for the plan, which will authorize Mayor Dan Horrigan’s staff to apply for a $10 million loan from the state’s Water Pollution Control Fund.
The financing will help with the $21.9 million cost of installing a storage basin on the south side of Cuyahoga Street near North Howard Street.
The structure will hold up to 2.4 million gallons of waste and stormwater from North Hill as the city aims to contain every drop of effluent per a federal environmental lawsuit.
Steve Fricker, deputy finance director for Akron, said the benefits of cleaner water will be felt for a century.
But longer loans, though reducing annual payments, come at a higher interest rate.
At 45 years, however, the interest rate climbs to 3 percent, adding $8.3 million to the bill.
Doug Livingston can be reached at 330-996-3792 or dlivingston@thebeaconjournal.com.
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