In a 3-1 vote this week, the city council approved seeking grant money and financing through the U.S. Department of Agriculture’s Rural Development Service agency in Wisconsin.
Council members Dan Wicka, Marlene Kassel and Brach Seitz voted yes. Nora Anderson voted no. The vote is not binding.
Rural Development has pledged to give Buffalo City a $3.8 million grant and 40-year $4.86 million loan at 3.62 percent interest if the city approves a two-phase plan to install a public water and sewer system.
Preliminary engineering of a water project is finished. Davy Engineering of La Crosse, Wis., is drafting sewer project plans to present to the city council.
The Wisconsin Public Service Commission requires Buffalo City to hold a referendum on the water project.
Wicka, chairman of the city’s public works committee, wants to schedule a referendum for November that could possibly address both the water and sewer projects on the same ballot.
But for now, the city council has not yet received preliminary cost estimates for a sewer system project. The price tag was expected to equal or exceed the $8.7 million for a water project.
Davy Engineering estimated a $57.30 per month water bill for the average homeowner. Projected average monthly charge for sewer service was $60 or more, engineers predicted.
Rural Development says it will void its agreement with Buffalo City and withdraw grant and loan money if a referendum fails.
The city is hosting an informational public meeting on the project at 6:30 p.m. Wednesday at the Buffalo City Hall and Community Center.

