Ledyard WPCA weighs USDA loan/grant options for sewer relining

The Ledyard Water Pollution Control Authority on July 1 heard a presentation on USDA funding options for sewer relining and service upgrades and agreed to pursue an application while reserving final acceptance until exact loan terms are known. Paul Cospino, who identified himself as representing the Connecticut Rural Water and Wastewater Association, and a consultant described USDA packages that mix loans and grants and said eligibility and grant share depend on local median income and system size.

"If we just got the loan and we paid off in 40 years, it would cost us about $4 a month," the chair (speaker 1) said, summarizing the authority's estimate of customer impacts. The presenter noted USDA often pairs loan and grant funds and that carving out a lower‑income subarea such as the Highlands could increase the grant portion, but cautioned the agency evaluates applications on income and scale. "They want to give money to Connecticut," the presenter added, describing USDA outreach to systems in the region.

Members debated whether to commit in principle to applying and concluded the town will submit an application while the WPCA will review specific offer terms before agreeing to accept a loan. The chair also stressed potential revenue upside from two planned developments, saying increased capacity could produce additional monthly income that would offset loan payments. The WPCA did not take a binding vote to accept debt; members said any final decision would follow receipt of formal USDA terms and internal review.