Sylvania City Council on Monday night unanimously agreed to pay off in full its debt owed to Lucas County for improvements to the Maumee River Wastewater Treatment Plant, saving more than $200,000 in interest fees.
Councilman Michael Brown brought before council the Utilities and Environment Committee’s recommendation to pay the city's estimated portion of the debt, $463,600, to Lucas County. The City of Sylvania secured a loan through the county for several improvement projects at the Maumee River Wastewater Treatment Plant that was approaching its July due date.
The city will save an estimated $220,000 in interest charges for making the one-time payment.
The money will be deducted from the city's sewage fund, which had about $1.29 million at the end of 2012. The fund’s remaining balance of $982,000 is above the sewage fund’s debt reserve goal of $809,000, Mr. Brown said.
Construction work for upgrades to the wastewater treatment plant in 2010 and 2011 totaled about $5.4 million. About $2 million was covered by the Ohio Public Works Commission, and $1 million was funded by the American Recovery Act.
The balance was divided among the four entities that share the usage of the plant’s capacity, Sylvania, Maumee, Waterville, and Whitehouse. The improvements included replacing old equipment and installing odor-control devices at the plant.
Member Katie Cappellini was absent.