City & County

Arkadelphia on fence about cashing in $4.2M loan to upgrade water meters

The City of Arkadelphia was among several municipalities and water providers tabbed for loans to improve water and sewer projects

The City of Arkadelphia is set to receive a $4,250,000 loan from the Drinking Water State Revolving Loan Fund, but whether it will accept the funding remains unknown. 

The city applied for federal funding in 2022 through the American Rescue Plan Act for a water meter project that would update all of the city’s meters to an AMI/cloud-based system. That application was denied, but the city became eligible for a low-interest loan through the state’s Department of Agriculture.

A Sept. 20 announcement by ADA lists Arkadelphia among a dozen other municipalities and water providers that were approved for more than $217 million in loans. 

ADA said Arkadelphia’s loan was “to complete all work required to bring the city into compliance with federal requirements.”

David Green, Arkadelphia’s utilities manager, said the city is in compliance with all federal requirements.

The city was notified by email Wednesday afternoon that ADA had approved the loan. Now, however, city officials are unsure whether they will accept the loan. The city manager’s office said in an email to that the indecision was “due to other bonding projects.” A decision is expected to be made by Oct. 6, the city said.

“While the meter project would be a fantastic upgrade to our system, our current meters are working properly, as well as all of our other equipment and facilities,” Green said.