EPHRATA - The first three phases of Ephrata's street and water pipe replacement project finished ahead of schedule and under budget.

City Administrator Wes Crago reported on the project's completion during a recent council meeting. The city divided the project into four phases, and received a Public Works Trust Fund loan to pay for the first three phases.

"Our first three phases were considered one project. That project is now complete," he said. "All the final paperwork has been done, sent to the state, accepted by the (fund's) board."

The city received a $6.6 million loan from the fund for the project to replace water pipes and repave roads throughout the city. The city also used about $1 million of its own funds for the project. Pipes were replaced in the southeast, northeast and southwest sections of the city between 2008 and 2010.

"We were under time, so it was completed ahead of schedule. We were significantly under budget, which is money we then saved and did not have to borrow from the state," Crago said. "So that saves the city a significant amount of money."

The city matched the state's contribution, which is 15.3 percent of the project cost, slightly higher than the 15 percent required, he said.

Coming under budget allows the city to give back some of the money it didn't need to borrow.

"It's very good for the city," he said. "The next phase ... there are additional incentives for the city to do what we already do naturally, which is finish it ahead of time, pay a little bit more in the local match, and we'll actually get a little better interest rate."

Crago said the Public Works Trust Fund board pays attention to how the city handles the money when it decides future awards.