Water and Wastewater Construction Loans Awarded
Nashville, Tenn. – Governor Phil Bredesen has announced that five communities will receive low-interest loans totaling more than $7.8 million through the State Revolving Fund (SRF) Loan Program to fund much-needed water and wastewater construction projects. The Department of Environment and Conservation administers the Clean Water and Drinking Water SRF Loan Programs for the State of Tennessee.
SRF loan recipients, whose loan amounts and projects are detailed below, include Hallsdale-Powell Utility District and the cities of Dresden, McMinnville, Moscow, and Portland.
"I'm always pleased to see local governments take advantage of this low-interest loan program," said Bredesen. "Investments in our drinking water and wastewater infrastructure are key to maintaining public health and also keep our communities moving forward in terms of economic and community development opportunities."
The SRF Loan Program provides low-interest loans to help communities, utility districts, and water authorities finance water and wastewater projects that protect Tennessee’s ground and surface waters. Loans are used to finance the planning, design, and construction of water and wastewater facilities. Through this program, communities, utility districts, and water authorities can obtain loans with lower interest rates than most can obtain through private financing. Interest rates for the loans can vary from zero percent to market rate based on each community’s economic index.
The funding order of projects is determined by the SRF Loan Programs’ Priority Ranking Lists that rank potential projects according to the severity of their pollution problems, compliance with state and federal rules and regulations, or protection of public health. Environment and Conservation administers the Clean Water and Drinking Water SRF Loan Programs in conjunction with the Tennessee Local Development Authority. Through 2006, the U.S. Environmental Protection Agency has provided seed money for the loan programs, and the state has provided the 20 percent matching funds.
Details of the SRF loans announced today include:
- Hallsdale- Powell Utility District, Knox and Union Counties – A $2.5 million 20-year loan with an interest rate of 0.84% for the construction of a new 24-inch water transmission main.
Wastewater Loans
- City of Dresden , Weakley County – A $1 million 5-year loan with an interest rate of 1.85% for repairs to the existing sewer lines.
- City of McMinnville , Warren County – A $2.5 million 20-year loan with an interest rate of 1.70% for the construction of a lime sludge stabilization process at the existing Wastewater Treatment Plant (WWTP).
- City of Moscow , Fayette County – A $330,641 20-year loan with an interest rate of 2.8% for the construction of upgrades to the existing Wastewater Lagoon, a new pump station, and a force main.
- City of Portland , Sumner County – A $1.5 million 20-year loan with an interest rate of 1.70% for WWTP improvements and infiltration and inflow correction.
Since its inception in 1987, Tennessee’s Clean Water State Revolving Fund Loan Program has awarded over $777,000,000 in low-interest loans. Since its inception in 1996, Tennessee’s Drinking Water State Revolving Fund Loan Program has awarded over $95,000,000 in low-interest loans. Both programs combined award approximately $75,000,000 annually to Tennessee’s local governments for water and sewer infrastructure projects.
Any local government interested in the SRF Loan Programs should contact the State Revolving Fund Loan Program, L&C Tower, 8th Floor, 401 Church Street, Nashville, TN 37243, or call (615) 532-0445. Information about SRF Loan Programs may be found on online at www.state.tn.us/environment/srf.
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For more information contact: Tisha Calabrese-Benton
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