It's going

to cost Senoia nearly $7 million to get its sewer system completed.

City officials

got the latest cost estimate Monday afternoon from Joiner Smith, who represents

the state Department of Agriculture's Rural Development Division.

In order to

pay for the system, Senoia is attempting to get a $3.5 million loan from

Rural Development, coupled with a $2.6 million grant from the organization.

The city has

to commit to $600,000 in funding from its own coffers as part of the funding

proposal.

In a lengthy

meeting, Smith outlined all the federal requirements for the city obtaining

the funds. Part of the process is making it mandatory for all residents

to hook up to the system. The city already has passed an ordinance to

that effect, but Smith also discussed the minimum rates.

Residents will

pay $19 for the first 1,500 gallons and $4 for each additional 1,000 gallons.

Commercial customers will pay $220 for the first 20,000 gallons and $4

for each additional 1,000 gallons.

Smith said

the process the city is going through does not necessarily guarantee them

funding, but it is a necessary part of the application process.

Included in

the cost is running 50,000 square feet of sewer line and building four

pump stations.

The city also

will be required to have the money zapped out of their account each month

electronically and maintain a special fund of 10 percent of the annual

payments in case something goes drastically wrong with the system.

City officials

will be required to insure the system, as well as any city employees who

will be collecting monthly sewer bills from residents.

After the city

completes the lengthy application, federal officials will give the city

an answer. If the city receives the funds, it will be required to gain

temporary financing for the system through a local bank, much like a construction

loan.

After the bank's

funds are exhausted, Rural Development will pay the bank off and allow

the city to draw from the grant funds.

The payback

on the loan is 40 years and will be examined every five to seven years

to determine if the city can get an equal deal through local financing,

Smith said.