Water, sewer funds closer

KATE GOLDEN

Frontiersman reporter

PALMER - If the governor doesn't line-item-veto it, the city of Palmer may nab some more money to fill the dearth in funding for its extension of water and sewer to the new Valley hospital.

The Senate Finance Committee denied Palmer's recent request to reallocate $1 million from other Palmer public-works improvements to this highest-priority project.

But Palmer may get a better deal. Senate Bill 46, which left the Senate Finance Committee a few days ago and is now being debated in the Legislature's special session, funds the lower-priority projects - and includes another $1.8 million for the water-sewer extension.

Right now, it's soft money. Public Works Director Rick Koch said that although Gov. Frank Murkowski has supported the project in the past, Murkowski is trying to get a nearly billion-dollar capital-improvements package down to $650 million.

"I personally believe that we are going to see some red lines on the capital appropriations bill after it crosses the governor's desk," he said. "It's probably not time to count your eggs."

Palmer has already secured $10.9 million for the project:

€ $7.3 million in U.S. Department of Agriculture grant funding

€ $2.3 million from a voter-approved bond release

€ $1.3 from the Palmer sewer and water enterprise fund

Koch also has been talking to Environmental Protection Agency officials about reappropriating $600,000 from Palmer water-main improvements to this project. There are no assurances that this will happen.

If it does, however, and the state money comes in, adding the total to $13.3 million, Palmer will be $1.1 million from its estimate, which includes a 10-percent contingency reserve.

Koch cautioned that the $14.4-million estimate is, after all, only an estimate. That uncertainty will resolve June 7, at 2 p.m., when bids open.

"The project funding is not very far from our estimates," Koch said.

Contact Kate Golden at 352-2284 or kate.golden@

frontiersman.com.