Federal stimulus money will cover about half of the money needed for the City of Nappanee to complete major upgrades to its wastewater treatment facility.

State Rep. Jackie Walorski, R-Jimtown, announced Thursday, the city qualifies for a nearly $2 million grant from federal stimulus money to be funneled through the Indiana Finance Authority.

Nappanee’s funding application outlines work to be done at the wastewater treatment plant on the city’s east side. Upgrades include a new sludge processing facility along with improvements to the treatment plant’s disinfection and air supply systems.

The city will go green with its disinfection process, changing it from chemical treatment to an ultra-violet light process.

The overall project’s cost is estimated at $4.5 million. City officials anticipate financing the remainder with a 20-year loan from the state’s Revolving Loan Fund.

The American Recovery and Reinvestment Act of 2009 will distribute approximately $125 million in funds to the Indiana State Revolving Fund, an existing program managed by the Indiana Finance Authority which makes loans to communities for wastewater and drinking water projects, according to a news release from Walorski’s office.