The city was given an additional $10,000 for paperwork.
A new reservoir and pump house will be constructed adjacent to the existing water treatment plant. The new system will be connected to Southeast Rural Water.
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The city also received a $493,000 revenue bond to pay for the interim financing from Lake Agassiz, said Kristin Schafer, city auditor. This will help pay for start up costs.
Having the combination of this state grant along with USDA Rural Development funding means the increases to residents’ water bills will be significantly less, she said.
Mayor Dennis Schudar said he brought the entire city council to Lake Agassiz when they requested the grant.
Schudar said 20 minutes after they presented their case they heard they were the No. 1 recipient.
“Everything helps,” he explained. “By receiving this grant it means we cut down on what we have to charge residents to help pay for the infrastructure.”
Southeast Water Users District is currently working on the new reservoir north of town. If everything goes as expected the city will be supplied by Southeast Water Users sometime next summer.

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