City council did some budget housekeeping during a special meeting Thursday afternoon. In a multi-part budget amendment ordinance, they tackled funding for the new wastewater treatment plant, the fourth engine for the powerhouse, and repairs to the city’s water storage tank.

The wastewater treatment plant component was two-pronged. An error had inflated the apparent amount of money available for construction of the plant, and the amendment corrected that. The second part of the amendment authorized a loan of up $8.6 million from the Alaska Department of Environmental Conservation to pay for the construction of the plant.

City manager Chris Hladick told Council that the full loan amount would probably be necessary, and that the legislature is unlikely to pony up more money for the project in the future.

“I think the wastewater treatment plant is probably getting old to them. We’ve gotten three grants for that project of $4 [million], $4 [million] and $3 [million]," Hladick said.

The ordinance also moved money around to fund the purchase of a fourth engine for the powerhouse. Hladick told Council that they would need to put a downpayment on the engine by June 15 in order to avoid new Environmental Protection Agency regulations.

“It used to be, when we ordered the first CAT, the C280, as long as you ordered it before the end of the year, when the new regs took place, you were good. Now it actually has to have a serial number stamped on a drive shaft or something, you have to have the order, plus them making it. So the EPA is kind of clamping down on that stuff.”

The final part of the budget amendment allocated an additional $55,000 in contingency funds for repairs to the city’s water tank. The city awarded a $100,000 contract to DAMA Industrial last month for the project, but Public Works director Nancy Peterson told Council today that the repairs might end up being more extensive than anticipated.

Council voted unanimously to move the ordinance to a second reading and public hearing on May 14.