NATCHEZ — City leaders approved an application Tuesday night for a $1.9-million state loan to improve the city’s water system.

The Mississippi Department of Health Loan would cover a majority of the $2.5-million plan for the city-wide improvements, which are to include upgrading water lines on Providence Road and Lewis Drive, enhancing services at the Natchez-Adams County Port, purchasing and installing new generators for the Cedar Lane water plant and at two water wells and installation of new control panels at the two wells.

The board of aldermen approved submittal of the loan application unanimously, with Ward 6 Alderman Dan Dillard as the lone absent board member.

Natchez Water Works would repay the loan, which carries an approximately 1.95-percent interest rate, with annual payments of approximately $120,000 to $155,000, Natchez Water Works Superintendent Tony Moon said at a previous meeting.

Moon reiterated Tuesday that the department expects to pay off the bond used to build the Cedar Lane water plant within the next few years, which would free up thousands of dollars to go toward repaying the $1.9-million loan.

The city hopes to receive the remaining $600,000 for the project from a Community Development Block Grant (CDBG) program, which applies to a wide swath of community needs. A public hearing concerning the CDBG will take place at 4:30 p.m. today.

Toward the end of Tuesday’s the meeting, Ward 1 Alderwoman Joyce Arceneaux-Mathis mentioned the possibility of retroactively receiving federal money dedicated to infrastructure projects at some point down the road.

Arceneaux-Mathis said she had spoken with members of Mississippi’s U.S. Congressional delegation about that potential, though she did not give an opinion about the likelihood that this mechanism would come to fruition.