KANNAPOLIS — The North Carolina Local Government Commission at its virtual meeting on Tuesday afternoon approved a finance agreement for the city of Kannapolis to borrow $11.7 million to pay for improvements to the city’s water treatment plant.

The LGC, chaired by North Carolina State Treasurer Dale Folwell, provides oversight to ensure that municipalities are borrowing money wisely and within their means.

The improvements at the water treatment plant, located at 1303 Pump Station Road, consist of de-watering, hauling and disposing of residuals from the plant site along with the installation of two hatches in the existing roof to remove two failing bulk storage tanks. The money will also pay for the installation of water main replacements, point repairs and a new $660,000 vacuum truck.

Kannapolis will receive a loan from Truist Bank and will pay back the money with an expected interest rate of 1.72% in a period no longer than 20 years. Bids for the improvements projects and all major permits have been received.

According to the LGC agenda, Kannapolis has had no defaults or deficiencies on paying back loans.

The LGC did not discuss the request from Kannapolis since the item was on the consent agenda. Now that the LGC has approved the finance agreement, the transaction with Truist Bank must be approved by the local government.