The Town of Twisp has found a less-expensive way to finance the replacement of the town’s water meters and other improvements to the water system.
At last week’s Town Council meeting, council members endorsed a recommendation by Public Works Director Andrew Denham that the town pursue a loan agreement through North Cascades Bank, which would result in savings for the town.
Denham said he had reviewed a proposed loan contract from Holman Capital, and had some concerns about loan conditions “we hadn’t talked about.” North Cascades Bank offered a lower percentage rate for repaying the loan, which will mean lower payments, and will charge no bank fees, Denham said, for a savings of $10,000.
The payments will be secured by revenues from the water system reserve fund, Denham said.
The water system project may be delayed because of the switch to North Cascades, Denham said, but added “in the long run it will be worth waiting a couple of months to get a better contract.” The council is expected to review a proposed contract from North Cascades at its Sept. 8 meeting.
The project, estimated to cost $279,000, includes replacing all the water meters that haven’t previously been replaced, installation of an automated meter reading system, installation of remote monitoring for the pump that controls the water level in the town’s reservoir, and other well improvements that will increase efficiency and save operating expenses.
Replacing the water meters will allow the town to remotely read all the meters in a few hours as opposed to several days, Denham said. The other improvements will address water losses in the existing system, he said.
North Cascades Bank also has established a line of credit with the City of Brewster to provide interim financing for its water project, the bank reported.