Lee, TDEC Announce Loans Totaling $17.8 Million for City of Fayetteville Water Improvements

Gov. Bill Lee and Tennessee Department of Environment and Conservation (TDEC) Commissioner David Salyers today announced three loans totaling $17.8 million for the City of Fayetteville to improve water infrastructure.

The loans are among six approved by the Tennessee Local Development Authority, with the loans for Fayetteville, the Town of Huntingdon, the City of Etowah, and the Cleveland Utilities Authority bringing the total of loans announced by the state today to $24.3 million.

“This program allows communities to secure low-interest-rate loans to meet important needs in water infrastructure,” Lee said. “I thank local leaders for taking steps to responsibly steward state funds for the best possible outcomes.”

“Water infrastructure is an important responsibility for a community, and we are glad the program can assist in this way,” Salyers said. “We look forward to the results that will come from these loans.”    

The City of Fayetteville will receive a loan for $15.2 million from the Drinking Water State Revolving Fund Loan Program for the replacement of aging waterlines. The loan has a 20-year term at 2.3 percent interest. The city received $7.5 million in principal forgiveness with the remainder of the loan amount to be paid back as principal.

Fayetteville received a separate loan for $1.8 million from the Drinking Water State Revolving Fund Loan Program for water treatment plant improvements. The loan has a 20-year term at 2.3 percent interest. The city received $1.26 million in principal forgiveness with the remainder of the loan amount to be paid back as principal.

Another loan for Fayetteville is $800,000 from the Drinking Water State Revolving Fund Loan Program for water treatment plant expansion. The loan has a five-year term at 2.1 percent interest. The city received $250,000 in principal forgiveness with the remainder of the loan amount to be paid back as principal.

Through the State Revolving Fund Loan Program, communities, utility districts, and water and wastewater authorities can obtain loans with lower interest rates than through private financing. These low interest rate loans can vary from zero percent to below market rate, based on each community’s economic health.

This fiscal year, TDEC has awarded $24,327,750 in drinking water loans and $38,905,000 in clean water loans to meet the state’s infrastructure needs. During fiscal year 2023, TDEC awarded $47,345,000 in drinking water loans and $64,095,945 in clean water loans for a total of $111,440,945.

Tennessee’s Clean Water State Revolving Fund Loan Program has awarded more than $2 billion in low-interest loans since its inception in 1987. The state’s Drinking Water State Revolving Fund Loan Program has awarded more than $300 million in low-interest loans since its inception in 1996.