May 7--ASHLAND -- Two local utility districts have been preliminarily approved to receive a combined total of nearly $2 million in federal stimulus funds to complete water and sewer projects.

Boyd County's Sanitation District No. 4 is set to receive an award of $400,000 for sewer improvements while the city of Greenup will get more than $1.5 million to complete a number of water projects. Both agencies must still undergo extensive final approval before the funding is delivered but are expecting it.

The awards will be structured as 50 percent low interest and 50 percent principal forgiveness, according to the Kentucky Infrastructure Authority that released its priority list of projects worth $66.7 million last week.

Of those funds, KIA said it will administer approximately $47.8 million for wastewater projects through the Clean Water State Revolving Fund and approximately $18.9 million to drinking water projects through the Drinking Water State Revolving Fund.

The KIA received almost 700 applications from agencies across the state for projects totaling approximately $1 billion. Approximately 50 projects were approved for priority funding.

A number of local governments that made requests, including the City of Ashland, did not receive priority funding but officials say they are hopeful that some of those initial projects will not get final approval, giving them a second shot at the money.

Sanitation District No. 4 Superintendent Howard Wallace said his agency plans to use the funds to complete a mile of gravity-fed sewer line on Stephens Road, located off Meade Springer Road. The line will serve approximately 170 customers and eliminate two major pump stations within the agencies district, which will actually save customers money, according to Howard.

"We're going to be able to reduce our operations and maintenance costs tremendously by eliminating two of the pump stations, he said.

The City of Greenup will use its $1,590,604, share of the funds to install a plant clarifier and complete a sludge disposal project in addition to adding a booster station on Ky. 2 and completing phase VIII waterline extensions to Shultz Creek.

Rep. Tanya Pullin, D-South Shore, said the project will go a long way to solve some of Greenup County's ongoing problems as well as bringing clean water to residents who really need it.

"This Phase 8 water project is probably one of the most important projects we've dealt with," said Greenup County Judge-Executive Bobby Carpenter. "It is greatly needed in that area, where people have had to truck water in for use."

According to Greenup Mayor Donna Hewlett, the five-year Phase 8 project will serve about 325 households in western Greenup County.

CARRIE STAMBAUGH can be reached at cstambaugh@dailyindependent.com or (606) 326-2653.

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