Lyon County will take out a $1.5 million line of credit to begin connecting the Crystal Clear Water System near Yerington with the Yerington water system.
Comptroller Josh Foli told the commissioners that although grants and loans from the state and the U.S. Department of Agriculture, Rural Development Division would pay for the work, the medium-term loan was required to begin the work. The county would be reimbursed by the state and federal money later.
"It is fully funded by the grants," he said. "We need the line of credit so we could finance the work up front."
Foli said that arrangement was a requirement for the grants to be approved.
He said he didn't expect to spend $1.5 million, but that was the amount of the line of credit, and that the county would not be charged interest on any funds that aren't spent.
The interest is expected to be about $67,500 per year.
The county took over the troubled Crystal Clear Water Co. on June 12, 2006, after the private water purveyor to 108 households of El Rancho Estates east of Yerington was unable to meet state environmental requirements or upgrade a system struggling with low water pressure and poorly maintained infrastructure.
The county approved connecting the system with the City of Yerington water system last October.
• Contact reporter Karen Woodmansee at kwoodmansee@nevadaappeal.com or 881-7351.