February 22, 2012--USDA withdraws wastewater funds (Pagosa Springs Sun)

Questions surrounding the town’s ability to treat its wastewater recently became complicated by two issues: the loss of federal funding to pay for that treatment and the apparent disregard for local contractors in a bidding process. Last Wednesday, the Pagosa Springs Sanitation and General Improvement District (PSSGID) received word from the USDA that an application for those funds had been considered, “voluntarily withdrawn” and that the money would be, “de-obligated.” Over a year ago, the Town of Pagosa Springs received notice from the USDA that it would receive funds for the construction of a wastewater treatment facility. The money included $3,145,000 in loans (at 2-percent interest) and $787,000 in grants. Along with other funds secured three years ago (a $2 million loan from the Colorado Water Resources and Power Development Authority and a $1.25 million grant from the Department of Local Affairs), the Town of Pagosa Springs had just over