The city of Orangeburg’s Department of Public Utilities has negotiated $6.4 million in wastewater and water loans at a very low interest rate, thanks in part to the federal stimulus package.

“Normally, we qualify at 3.5 percent,” DPU Manager Fred Boatwright said Tuesday. After negotiations with the state’s Water Quality Revolving Fund Authority, the rate for the federal stimulus-backed money will be 1.82 percent for 20 years.

That’s $600,000 in savings and it’s “a very good business opportunity for DPU,” he said.

Orangeburg City Council passed separate resolutions in support of both loan applications, one from the Water Pollution Control Revolving Fund and the other from the Drinking Water Revolving Loan Fund.

Councilman Charles Barnwell noted that low interest rate is due “not to stimulus” money, but to DPU’s efforts to negotiate it down.

“We were able to negotiate it down because they can use the stimulus,” Boatwright said.

The $4,557,000 wastewater loan will be used in part to make $2.07 million in improvements and repairs to the 30-year-old concrete wastewater interceptors that go to the treatment plant and are “in danger of collapse.” It will also be used for $2.45 million in improvements and repairs to the wastewater treatment plant.

The $1.8 million water loan will be used to improve and repair a 10-inch waterline on S.C. Highway 400.

In other business, council received the audit for the 2007-2008 fiscal year from Murdaugh and Associates. The city received a clean opinion with no major adjustments recommended.

According to the auditor, the city’s general fund balance sheet is healthy with six months worth of operating expenses on hand in cash and investments. The fund balance decreased by $378,000, which was used to balance the budget.

“We’re very healthy in the fund balance end,” said City Administrator John Yow, when he later introduced the proposed new budget calendar. Citing tough economic times, he said the city has “to use some of the fund balance to operate, but we don’t want to overdo it.”

In other business, council:

* After public hearings, gave first reading to two separate ordinances relating to the rezoning of a parcel on Whitman Street owned by Pruitt Properties Inc.

One ordinance amends the land-use plan to change the area from Residential General District to Business/Commercial District. The other ordinance rezones the property from A-2 Multi-Unit Residential District to B-1 General Business District.

Located next to Orangeburg Nursing Home, also owned by Pruitt Properties Inc., the area will be used for offices of the facility.

The vote was five in favor. Explaining that he wanted to talk to the adjacent property owner first, Councilman Bernard Haire abstained. Councilman Trelvis Miller was absent.

* Passed a resolution asking the state General Assembly to reject efforts to make cuts in the South Carolina Local Government Fund.

Yow noted that although lawmakers are willing to make large cuts to local governments, no one has suggested cutting the $837,000 the city sends to the state in traffic and criminal fine assessments. Even though the local delegation is generally more supportive, the cuts would be “wholly unfair,” he said.

“There is a solution,” said Haire, who had suggested the resolution.

Sens. Brad Hutto and John Matthews have indicated that while they oppose the “pretty radical” House bill, they “felt like if they cut other budgets, the cities and counties have to take their lumps like everyone else,” Mayor Paul Miller said.

The mayor said he objected to efforts of lawmakers to tie the cities’ hands, “especially as relates to the millage cap.”

* Gave final third reading to an ordinance amending DPU policy to address zoning areas.

City Attorney James Walsh said the ordinance applies to two separate concerns.

For parcels that lie partially in and partially out of the city limits, the owner will pay out-of-city utility rates for the entire parcel, he said.

The second area of concern applies to property annexed into the city and would “clarify how we define owners.”

Under DPU regulations, property owners seeking annexation are required to sign water and wastewater covenants to receive service. As amended, property that is titled under different LLCs, entities or corporations -- but still owned by the same individual -- will be required to have covenants for all of the properties before water and wastewater service is provided.

“That also includes property owned by an immediate family member of that property owner,” Walsh said.

* Gave final third reading to an ordinance amending the zoning ordinance to give the city greater flexibility when assigning a zoning designation to newly annexed property.

* Received a report from Department of Public Safety Director Wendell Davis that his department has been reaccredited by the Commission on Accreditation for Law Enforcement Agencies.

* Ratified a March 17 resolution protesting AIG’s award of million-dollar bonuses after taking billions in taxpayers’ money.

* Proclaimed “loyalty” the Community of Character trait for April.

* Passed a resolution designating April Fair Housing Month.

T&D Government Write Tucker Lyon can be reached at tlyon@timesanddemocrat.com or by calling 803-533-5545.

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