Water and Wastewater Construction Loans Awarded

Sunday, November 18, 2007 | 06:00pm

Nashville, Tenn. – Governor Phil Bredesen has announced that six communities will receive low-interest loans totaling $46,898,498 through the State Revolving Fund Loan Program to fund much-needed water and wastewater construction projects. The Department of Environment and Conservation administers the SRF Loan Program for the State of Tennessee.

“I am pleased to see local governments accessing this important program,” said Bredesen. “The State Revolving Fund loan program is a tool to help communities address their current infrastructure needs and allow them to prepare for future needs.”

SRF recipients, whose loan amounts and projects are detailed below, include the Water Authority of Dickson County and the cities of Lafayette, Livingston, Memphis, Nashville and Shelbyville.

“Community investments in our drinking water and wastewater systems are vital to maintaining environmental and public health.” Environment and Conservation Commissioner Jim Fyke said. “These loans will help keep our communities moving forward.”

The SRF Loan Program provides low-interest loans that help communities, utility districts and water authorities finance projects that protect Tennessee’s ground and surface waters and public health. 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 Program’s priority ranking list, which ranks potential projects according to the severity of their pollution problems, compliance or protection of public health. Environment and Conservation administers the SRF Loan Program in conjunction with the Tennessee Local Development Authority. Through 2007, the U.S. Environmental Protection Agency provided seed money for the SRF Loan Program, and the state provided matching funds.

SRF Drinking Water Loans were announced today for the following recipients:

  • Lafayette, Macon County – A $407,125, 20-year loan, with an interest rate of 1.63 percent, to construct a new raw water transmission line along Spring Creek Road from the Spring Creek Pump Station to the Lafayette Water Treatment Plant.  The new line will allow Lafayette to fully utilize the Barren River, in addition to two springs, as a water source.
  • Livingston, Overton County – A $2-million loan increase to an existing 20-year loan, with an interest rate of 1.51 percent, to construct a raw water intake at Butlers Landing on the Cumberland River and to install approximately 99,500 linear feet of raw water transmission main from the new intake to the existing water treatment plant. Utilizing the Cumberland River will give Livingston a more reliable water source that is able to accommodate current and future needs.

SRF Wastewater Loans were announced today for the following recipients:

  • Memphis, Shelby County - A $7-million, 20-year loan, with an interest rate of 2.59 percent, to expand the Loosahatchie Sewer Collection System and to begin the first phase of a project to expand the Mary’s Creek Sewer Collection System.
  • Memphis, Shelby County – A $2.55-million, 20-year loan, with an interest rate of 2.59 percent, for the second phase of a project to expand the Mary’s Creek Sewer Collection System.
  • Nashville, Metro Davidson County – A $3,400,800, 20-year loan, with an interest rate of 3.31 percent, to improve the Hurricane Creek Pump Station.
  • Nashville, Metro Davidson County – A $1,184,121, 20-year loan, with an interest rate of 3.31 percent, for rehabilitation work on the Inglewood Sewer.
  • Nashville, Metro Davidson County – A $1,692,852, 20-year loan, with an interest rate of 3.31 percent, for rehabilitation work on the Hermitage Area Sewer.
  • Nashville, Metro Davidson County – A $1,863,600, 20-year loan, with an interest rate of 3.31 percent, for rehabilitation work on the 28th Avenue Sewer.
  • Shelbyville, Bedford County – A $24.8-million, 20-year loan, with an interest rate of 1.78 percent, to upgrade and to expand the wastewater treatment plant.
  • Water Authority of Dickson County (Fairview) – A $2-million, 20-year loan, with an interest rate of 1.66 percent, for improvements to the Fairview Wastewater Treatment Plant. This project also will tie a 4-inch diameter force main along CCC Road into an existing force main to pump sludge to the Jones Creek Waste Water Treatment Plant.

Since its inception in 1987, Tennessee’s Clean Water State Revolving Fund Loan Program has awarded more than $884 million in low-interest loans. Since its inception in 1996, Tennessee’s Drinking Water State Revolving Fund Loan Program has awarded more than $107 million in low-interest loans. Both programs combined award approximately $75 million annually to Tennessee’s local governments for water and wastewater infrastructure projects.

Any local government interested in the SRF Loan Program should contact the State Revolving Fund Loan Program, 8th Floor, L&C Tower, 401 Church Street, Nashville, TN 37243, or call (615) 532-0445. Information about SRF Loan Program may be found online at www.tdec.net/srf.

For more information contact:

Tisha Calabrese-Benton
Office (865) 594-5442

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