Bowerston reviews USDA loan agreement for water project

On Tuesday, Feb. 3, the Bowerston Village Council met in a special session to review a proposed loan agreement with the U.S. Department of Agriculture for the village’s water distribution project.

Mayor Paula Beamer welcomed Julia Wood of the USDA and said village officials “have been working closely with Julia for the past five years” as the project was developed.

Wood told council the agreement includes $1.2 million in loan funding and $1.585 million in grant funding from the USDA toward the project’s total cost of $5.437 million. The remaining balance is expected to be covered through other financing sources, including $250,000 from the Appalachian Regional Commission, $1 million from the U.S. Army Corps of Engineers and $750,000 in Community Development Block Grant funding — all grants.

Wood also thanked village Solicitor James Ong for attending the meeting, saying it was helpful to have legal counsel available to explain the loan terms.

Wood said the USDA requires the village to set aside $1,844 per month beginning one month prior to closing, citing a short-lived asset requirement. She said there is also a reserve requirement for catastrophic events: the village must set aside $380 per month until $45,569 is accumulated, an amount equal to one annual loan payment.

Ong advised the village to create separate line items in its UAN software to track the funds and provide visibility for annual reporting.

Beamer noted the loan term is 40 years, running from 2026 to 2066. She said water rates may need to increase to cover the cost of upgrades, but emphasized she is working on ways to avoid or minimize any increase and will keep council updated.

Wood said a $50,000 disbursement would be issued within two business days of closing to cover payment to bond counsel for preparation of the loan bonds. She said a compliance review will be conducted in the coming weeks.

Council also took the following action:

• Passed Resolution 04-2026 authorizing the mayor and fiscal officer to enter into the USDA financing agreement.

• Approved Resolution 05-2026 to proceed with the loan.

• Passed Ordinance 2026-02 as an emergency measure to execute the bonds prepared by bond counsel.

The next regular meeting of Bowerston Village Council will be held Tuesday, Feb. 16, at 6 p.m. at Village Hall.