WELSH, La. (AP) - Welsh officials plan to seek funding from the state Department of Health and Hospitals to help offset the cost of improving the town's water supply.

The American Press reports the town council this week agreed to begin seeking $900,000 through a loan program with the DHH to replace the town's groundwater tank with two wells.

Town officials say the state has mandated that the town replace the aging storage tank.

Town engineer Bryon Racca says plans for the project call for building a new tank off to the side, decommissioning the old tank and building a second tank where the old one was.

Under financing offered by DHH, the town could receive 20 percent of the project cost from a grant, with the remaining 80 percent in the form of a 20-year loan at 2.45 percent interest.

 

Copyright 2016 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.