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Ky. approves loans to improve town's sewers

Ben Finley, Associated Press

FRANKFORT, Ky. (AP) -- The state will release nearly $2 million in low-interest loans to help a small southeastern Kentucky town stop the flow of human waste into the Cumberland River during rainstorms and to upgrade the town's water metering system.

In 2007, the city entered into an agreement with the state that it would prevent sewage overflows, resulting in a planned $8.2 million construction project.

The Kentucky Infrastructure Authority on Thursday approved $500,000 in loans for the sewage project and $1.3 million in loans to upgrade the water meters, which will save the town money over time.

Pineville is a town of about 2,500 near the Tennessee and Virginia borders. Its economy depends heavily on coal. The median household income is $21,000 a year, about $20,000 less than the state median.