Arnold is getting a state loan of about $1.8 million to make improvements to its sewer system, Gov. Tom Wolf’s office announced Wednesday.
The 20-year loan has a 1% interest rate for the first five years that rises to 1.743% for the remaining 15 years.
The combined sewer system in the city will be reconstructed by separating two partial sewer lines and widening the combined sewer piping, according to the announcement from Wolf’s office.
The funding was included in $119 million awarded for a total of 18 drinking water, wastewater and other projects across 15 counties through the Pennsylvania Infrastructure Investment Authority, commonly called PennVest.
Mayor Joseph Bia said the city couldn’t pay for this work without the loan, and thanked state Rep. Frank Dermody and Sen. Jim Brewster for their help in getting it.
“We don’t want to take on more debt. We’re being forced to by the (state Department of Environmental Protection),” Bia said. “This project was mandatory. It’s not something we’re voluntarily doing.”
The loan “is absolutely our best option,” he said. “It’s the only way to take on this new debt in the best way for the taxpayers.”
Bia could not say when work would begin.
Arnold was the only recipient in Westmoreland County.
“Every day, we see more and more evidence of the impact that neglected infrastructure and environmental irresponsibility have on our communities,” Wolf said in a statement. “Significant investments like the ones made by PennVest today and programs like Restore Pennsylvania continue to put the commonwealth on the right track to clean water and healthy living environments.”
