The Town of Mount Gilead has adopted a budget amendment to facilitate the replacement of some water mains. Town Commissioners approved the measure Tuesday at their regular August meeting.
The action to add an expenditure of $50,447 follows last week’s acceptance of a financing agreement proposed by the U.S. Department of Agriculture for the project.
The total cost to replace part of the water line extending down Main St. from the water tank is $1.021 million, and the local expenditure is the town’s initial cash match. The USDA will provide a grant of $353,000 towards the project, and finance the remaining $618,000 over 38 to 40 years at an interest rate of 2.75%.
The water improvement project will include replacement of a section of asbestos cement pipe dating back to the 1950s, and other iron pipe said to have been installed in the 1930s.
No timetable for the project has been announced.