Town Refuses Sewage Treatment Plant Loan

Or, as the Mercury News puts it, State water board yanks city's $135-million loan over sewer fight.

[CA] The state's water board voted Friday to take away a $135 million loan after civic infighting in this Central Coast community derailed plans for a wastewater treatment plant the money was to pay for.

Local officials said they couldn't keep taking the money because the state wouldn't permit any changes to the sewer plan under which the loan originally was granted years ago.

The town halted construction on the original plant, and started researching out-of-town sewage treatment options, due to concerns about costs imposed on residents. It seems, though, that having to repay the loan -- with interest -- will hit the town even harder. Apparently, Los Oslos had a sewage treatment problem for the last two decades.