Petal Takes State Loan for Sewer Works
Petal Board Approves State Loan for $5 Million Sewer Project
The Petal Board of Aldermen voted Oct. 6 to accept a state loan agreement to finance sewer system improvements, with most of the cost covered by subsidy.
At the regular meeting, the presiding mayor told the board the city would take on financing through the Mississippi Department of Environmental Quality's water pollution control revolving loan fund. "This is a situation where we're able to do $5 million worth of work and get a subsidy of $4 million... we won't have to make a payment on this until 2029. Even at that point, it is only 08% interest," the mayor said, according to the meeting record. The figure was transcribed as "08%," which city officials have not yet clarified, though it is likely intended as 0.8 percent.
The mayor also noted the city is separately managing a larger bond set to be retired in 2032, distinguishing that debt from the new loan agreement.
The loan represents new public debt taken on through a state revolving fund, with the amount, subsidy level and repayment terms entered into the meeting record. The deferred payment start date and low interest rate are details relevant to the city's overall debt load as it continues sewer system work.