City of Lancaster Receives $500,000 in ARC Distressed Counties Funds

Press Release - 09/28/2018

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FRANKFORT, Ky. (September 28, 2018) – The Department for Local Government (DLG) has announced $500,000 in Appalachian Regional Commission (ARC) Central Appalachia Distressed County Infrastructure funding for the City of Lancaster.

The grant funding will help the city construct a water treatment plant that will be capable of processing 3 million gallons of water a day. The new facility will replace the current water treatment plant and is expected to improve water quality and service for 208 businesses and 1,495 households in Garrard County.

The current water treatment plant was constructed in 1951, with the latest improvements being made in 1994. Due to its age and design, the plant has exceeded its useful service life and requires a high level of maintenance, making it expensive to operate and maintain.

In addition to the $500,000 in ARC funding, the project has secured an additional $1.5 million in federal funding, $500,000 from state sources and $8.5 million from local sources. This brings the total project funding to $11 million.

“Funding a project of this scale has truly been a team effort, and these improvements stand to have a profound impact on those who live and work in Lancaster,” DLG Commissioner Sandra K. Dunahoo said. “I am proud that DLG could invest these federal dollars in such an important public project.”

“Upgrading and replacing aging infrastructure is a challenge faced not only by the City of Lancaster but by many communities across the Commonwealth and across the nation,” Sen. Tom Buford said. “I’m thankful for this grant announcement, which will allow the city to make these improvements while minimizing the burden shouldered by ratepayers.”

The ARC Distressed Counties Program provides funds for designated counties to undertake projects that strengthen communities. Currently, 84 counties across eight states qualify for distressed county status based on per capita income and rates of poverty and unemployment. This includes 37 counties in Kentucky.

Funds are administered by DLG, an arm of the Office of the Governor dedicated to supporting local officials and communities. For more information, visit