The Register-Herald, Beckley, West Virginia

Local News

November 19, 2008

Council denies Lewisburg’s application for grant, loan

By Christian M. Giggenbach

Lewisburg officials said Tuesday an application for a grant or low interest loan has been denied by the West Virginia Infrastructure and Jobs Development Council.

City officials contacted the agency in hopes of providing funding for the joint water project with Ronceverte.

In June, Lewisburg hammered out a 40-year agreement to provide Ronceverte with water for a price of $1.75 per 1,000 gallons. Lewisburg’s water source is the Greenbrier River.

“The reason we are not eligible for grants or low interest loans is because the water department is run efficiently,” Councilman Wade McClure said.

A letter from the infrastructure council suggested the city should “pursue a Water Development Authority loan of $929,00 at a rate of 5 percent over a 40-year period to fund the project.”

“I think we should go broke so that we can get a bailout,” McClure quipped.

Lewisburg Mayor John Manchester said an audit report indicated city water rates would not need to be raised in order to complete the project.

A future plan also calls for constructing water lines to Renick, Manchester said.

“We can potentially service more customers north of the city,” he said.

— E-mail: cgiggenbach@register-herald.com

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