The city of Fort Dodge and the customers of its water system got a nice break from the state government Monday.

The city had previously borrowed $9 million from a low interest loan fund operated by the Iowa Finance Authority to pay for water main improvements.

On Monday, local leaders received an email from the Iowa Finance Authority indicating that it would forgive $1.2 million of that amount, according to City Manager David Fierke.

That means $1.2 million of debt will be erased.

Word of the loan forgiveness was received on the same day that the City Council approved a significant water valve project.

The council hired Doyle Construction to replace some valves throughout the city. These are very large valves on water mains that are six to 12 inches in diameter. The company will be paid $480,338.30.

Other bidders for the work were Rasch Construction, Fort Dodge, $496,449.50; On Track Construction, Nevada, $624,516; Max Smith Construction, Creston, $629,951.90; Castor Construction, Fort Dodge, $640,705.50; and Riley-Armstrong Plumbing & Heating, Fort Dodge, $668,737.

In an unrelated matter, the council ordered three Dodge Durango sport utility vehicles for the Police Department from Shimkat Motor Co., of Fort Dodge, for $124,389.

Councilmembers Cameron Nelson and Lydia Schuur were absent from the otherwise unanimous votes.