GEORGETOWN — Town officials will dip into savings in an effort to expedite a major waterline upgrade after the low bid for the project came in much higher than anticipated.

Teal Construction’s low bid for the work, which includes service line/water main upgrades along portions of North and South Bedford streets and East and West Market streets, was $1,668,668, well above the $1,255,000 total-forgiveness loan pledged from the state through the Drinking Water State Revolving Fund.

At its Wednesday meeting, Georgetown’s mayor and council voted 5-0 to make up the approximate 33% difference — up to $413,668 — through the town’s realty transfer tax account.

“After discussions with (the) town engineer and the Drinking Water State Revolving Fund, the time to secure additional funding through the Office of Drinking Water would take longer than the estimated time to complete the project,” said Georgetown Town Manager Eugene Dvornick. “In effort to keep the project moving and getting it scheduled, it is the recommendation of myself and the finance staff to appropriate up to $413,668 from the realty transfer tax account.”

Georgetown Mayor Bill West agreed.

“We want to make up that money,” he said “There is two ways to making up that money. One is going back to the state, which would probably take to October to get it approved, or we take the money from our real estate transfer fund that we have been putting money in for quite a few years now, and it has built up to a tremendous amount.”

The town’s current realty transfer tax balance is $1,377,690.67, Mr. Dvornick said.

If the entire $413,668 is not needed, then the town would not take the full amount from the RTT account, Mr. Dvornick said.

The town’s hope is the water-upgrade project will begin in several months and will be completed fairly quickly.

“The notice of awards should go out this week to Teal Construction. So hopefully, they’ll get it scheduled for early to mid-spring,” Mr. Dvornick said.

Following completion of the upgrade, Delaware’s Department of Transportation plans to resurface North and South Bedford streets and East and West Market streets, which are roads maintained by DelDOT.

“I think this is important to do it. I think (it) is very important to the town to proceed with this project,” said Mayor West, noting that road resurfacing is tied to the completion of the water project. “We’ve got to get them (the waterlines) taken care of first, and we’ll proceed with the streets. I don’t think there is any problem there.”

Last summer, by an 82-to-2 margin, residents authorized mayor and council to borrow up to $1,255,000 in a 100% forgiveness loan to cover capital costs for the Market Street/Bedford Street water main and service line project.

At an interest rate at 1.3375%, the town’s financial responsibility would be slightly more than $13,000 in interest for the project, if the maximum amount needs to be borrowed.

Mr. Dvornick noted that the interest accrued “is only during construction. At completion of the project, 100% of the principle is forgiven,” he said.

Presented in March 2020, the project will entail replacement of 1,225 linear feet of water mains, plus water service lines, meter pits and meters coming from the water mains to the residents or businesses.