The borough assembly has approved applying for a $3.8 million loan from the state to fund construction of a new water treatment plant, estimated to cost nearly $15.4 million.

The borough has nearly $11.1 million in funding from two federal grants and one federal loan, leaving a shortfall of $4.3 million, according to information presented to the assembly for its April 26 meeting.

The assembly approved seeking a loan from the Alaska Drinking Water Fund, to be paid back over 20 years. It would cover construction of a new building to house what’s called a DAF (dissolved air floatation) syste...