An $8.2 million loan to pay for sanitary sewer improvements was approved by the Fort Dodge City Council on Tuesday.
The council's action will result in the city borrowing the money from a revolving loan fund operated by the state.
The loan will have a 1.75 percent interest rate. It will be paid off over 20 years with revenue from sewer bills.
The money will pay for an already completed sanitary sewer evaluation study, plus improvement projects along 10th Avenue North, South 19th Street and at a lift station on the city's north side.
Councilman Jeffrey Halter was absent from the otherwise unanimous vote to approve the loan.
In another move related to infrastructure funding, the council approved the second reading of a measure that would raise water rates by 1.5 percent a year for the next four years.
Councilmen Kim Alstott, Dave Flattery, Andy Fritz, and Terry Moehnke voted yes.
Councilmen Dean Hill and Don Wilson voted no, while Halter was absent.
The rate hike must be approved by the council one more time. If it wins final approval, the first 1.5 percent increase will go into effect on July 1.
A customer who uses 2,000 gallons of water a month would pay $12.21 in 2014 if the increase wins final approval.
In 2015, that number would rise to $12.40 a month. In 2016, it would be $12.58 while in 2017 it would be $12.77.