NORWICH – Federal grant funds are letting the City of Norwich to move forward with a multi-million dollar undertaking to replace the its outdated water tank on Wheeler Avenue at a lesser cost to taxpayers than predicted.

Norwich officials announced last week that the city has secured a $62,000 grant through the USDA to pay unexpected lead abatement costs associated with the water tank replacement project. A lead-based paint was used to paint the tank.

Earlier this year, the project, which was initially estimated at a total $2.7 million, was upped to approximately $3.4 million due largely to unforeseen costs of lead abatement and incidental expenses. The city council approved up to $780,000 in additional bonds for the project at a special meeting called in July, though the goal, according to Department of Public Works Superintendent Carl Ivarson, is to utilize as little of that money as possible.

Ivarson explained the city also received a $750,000 federal grant through the USDA Division of Rural Development in 2014, but could not use those funds until other funding became available.