By Sara QuamThe Lewis and Clark Rural Water Board is allowing members to pre-pay their share of the project to get more money to spur the project along immediately.As the project is able to collect more money now, members are able to save money in the long-run by avoiding inflation costs.Both the city of Luverne and Rock County are asking Lewis and Clark for permission to pay early.The city of Luverne is bonding for the project costs, and even though there will be interest payments in order to repay bonds, the savings will come by avoiding inflation for construction costs.Rock County Commissioners also decided to prepay Rock County Rural Water’s share of the project.For Rock County Rural Water to prepay its share of the project, the county will pay $533,000.The county is hoping it gets that in the form of a Drinking Water Revolving Fund loan that Rural Water Manager Dan Cook applied for. The loan comes at a very low interest rate.County Administrator Kyle Oldre said, "I applaud Dan for going out and finding this money."Cook said he feels confident that paying early will be the right decision. "We know where we’re at. We’re set," he said. "There’ll be no surprises."The county feels it is in line for the DWRF loan, but is waiting for details, such as the interest rate. They are typically less than 2 percent. All Lewis and Clark members have until Aug. 15 to decide on the prepayment.The city of Sioux Falls has decided to bond for $56 million.Lewis and Clark is using the early payments for an $80 million treatment plant, along with laying more pipeline and digging wells.Luverne City Administrator John Call said to the Luverne council, "To cap our inflation cost, to me, is a very prudent thing to do."With three states and almost 300,000 people affected by the water system, leaders believe it’s unlikely federal funding will be reduced.Lewis and Clark Executive Board Chairman Red Arndt said he believes that states and water providers paying early makes it more likely the federal government will actually increase funding the project.He said, "It may get Washington to step up because it shows support from us."The federal government is paying 80 percent of the project; states are paying 10 percent, and member cities are paying 10 percent.City of Luverne prepaymentLuverne’s share is $1.3 million for the 750,000 gallons per day capacity.The city has put away money over time totaling $600,000. The city of Luverne has already made payments of $375,000 to Lewis and Clark system.Lewis and Clark has also offered Luverne some excess capacity — 70,500 gallons per day — for an extra payment of $260,000. Luverne decided to add that extra water capacity.With the extra capacity and cost, minus what the city has in reserves for the project, the total amount Luverne would have to bond is about $1 million.With estimated interest it would be about $1.6 million over 20 years of the bond’s life.The debt service on the bond would be about $80,000 per year.If the city chose not to bond, and instead paid $100,000 annually to Lewis and Clark, the total payoff would be closer to $4 million because of anticipated increases in construction costs.The bond issue is not expected to affect utility rates because the city already budgeted $100,000 per year to go toward Lewis and Clark.Lewis and Clark will not use the funds until fiscal year 2007, so the city of Luverne plans to invest the bond proceeds until Lewis and Clark determines it needs Luverne’s share.The additional water will supplement, not replace, Luverne and Rock County’s water production.