NATCHEZ — Natchez is seeking $2.5 million to make improvements to the city’s water system.

Natchez Community Development Director James Johnston said the city and Natchez Water Works would collaborate to develop the project, which would use $600,000 in grant money and $1.9 million in loans if all applications were approved.

The grant application is through the Community Development Block Grant program, a federal program that encompasses a wide variety of needs.

Most of the funds would be covered through Water Works via a $1.9 million loan from the Mississippi Department of Health specifically for improvement of water systems.

Natchez Water Works Superintendent Tony Moon said the department would make annual payments of approximately $120,000 to $155,000 to repay the loan, which would have a 1.95-percent interest rate.

The project, Moon said, is not expected to cause a rate hike for Water Works customers.

Ward 6 Alderman asked if this loan would hurt the city’s ability to pay off debt on other obligations, such as the Natchez Convention Center.

Responding to Dillard, City Attorney Bob Latham said this project would have no effect on any other city obligations.

Even if the city does not receive the $600,000 in grant funding, Johnston said that would not necessarily preclude Water Works from proceeding with their project.

Though officials have yet to determine the exact scope of work, the following are improvements listed at the meeting that the project would likely implement:

• Upgrading the water lines on Providence Road and Lewis Drive.
• Purchase and installation of new generators for the water plant on Cedar Lane and at two water wells
• Installation of new control panels at the two wells, and
• Enhancing services at the Natchez-Adams County Port.

The board of aldermen unanimously approved various motions to proceed with the applications for funding.