Keokuk, IA – Residents will be asked to cover a smaller portion of the cost of a 2,000,000 gallon water storage tower in western Keokuk.
General Manager Bill Cole says the Keokuk Municipal Water Works was probably going to have to borrow $5,000,000 for the project. Revenue from water sales and distribution would be used to pay off the loan.
Cole says that plan has changed with the receipt of a $2,000,000 federal grant. He says now about $3,000,000 would be needed.
Cole says an upcoming rate hike of 6% will continue as planned, despite the grant, to help account for revenue lost during 2008. He hopes the grant will lead to lower increases in the future.
Cole says steel costs could result in an additional savings when the project goes out for bid in late March.
The tower will be built to the north of the former Lincoln Elementary School.