HUNTSVILLE — The U. S. Department of Agriculture Rural Development Program presented a direct loan of $4.3 million and a grant of $569,600 to the Walker County Special Utility District (SUD) on Tuesday, clearing the way for a series of improvements to the SUD’s water infrastructure that will improve service for a large number of its nearly 10,000 Walker County customers.

The funds will be used to install a new water tower, upgrade service pumps, replace an existing well on Highway 75 North and construct a new well in the Crabbs Prairie area. In addition, nearly 73,000 linear feet of water lines are expected to undergo replacement, SUD General Manager James Morrison said.

“We’re getting to the end of our design process now. Our original designs were expected to last about 30 years, and that’s about how long we’ve been in business,” Morrison said. “So this is just a natural progression.”

Walker County SUD currently serves three major service areas: Highway 30, Crabbs Prairie and Pine Prairie. Morrison said the new funding will primarily affect Crabbs Prairie and Highway 30.

In addition to resolving localized water pressure issues in the western Crabbs Prairie area, the improvements are also expected to improve water quality for customers in the Highway 30 area, which has hard water.

“Our water on Highway 30 and (FM 1791), that area, is extremely hard,” Morrison said. “It has a lot of iron and manganese in it, which is nothing dangerous or harmful; it’s just unpleasant. This project will eliminate that.”

Morrison said part of the funding will be used to plug a well in the Highway 30 area and begin pumping water from the Crabbs Prairie area to Highway 30 customers, resulting in softer water for that service area.

The SUD borrowed the $4.3 million from the USDA at a current interest rate of 3.25 percent, with a 40 -year repayment term. Morrison said SUD customers can expect their rates to remain the same, as current rates will offset the cost of repayment.

“Our rates already reflect what the debt service will be to that note,” Morrison said. “It’s a 40 -year note, which makes it as cheap to each customer over the long haul as we can possibly do it.”

Founded in 1994, the USDA Rural Development Program offers grants and loans to rural communities with fewer than 10,000 residents, as well as public entities, nonprofit corporations and Indian tribes. In 2009, the program provided $91.8 million of loan and grant assistance to more than 200,000 households in rural Texas.

“Reliable and safe water systems are a basic necessity for all communities,” USDA Rural Development State Director Paco Valentin said. “Rural Development is pleased to assist the Walker County Special Utility District by providing funding that will upgrade and improve the overall operation and delivery of their water system.”

Morrison said the improvements the SUD will be able to make due to this funding will also provide more opportunities for economic growth in Walker County.

“As the county continues to grow, it gives the opportunity for rural development,” Morrison said. “It certainly should increase property values, and we can look at it as an opportunity for economic development for our whole community.”