More Than $16.1 Million in Water and Wastewater Construction Loans Awarded
Tennessee Governor Bill Haslam and Department of Environment and Conservation Commissioner Bob Martineau today announced that five communities and one utility district have been approved to receive more than $16.1 million in low-interest loans for water and wastewater infrastructure improvements.
The State Revolving Fund (SRF) Loan Program provides low-interest loans that help communities, utility districts, and water and wastewater 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.
“The State Revolving Fund Loan Program helps communities address current infrastructure needs and prepare for future needs, improving the health of our communities and their ability to grow,” Haslam said.
Through the SRF Program, communities, utility districts, and water and wastewater authorities can obtain loans with lower interest rates than most can obtain through private financing. Interest rates for loans can vary from zero percent to market rate based on each community’s economic index. Loans utilizing EPA grant funds can include a principal forgiveness component.
“Community investments in our drinking water and wastewater systems are vital to maintaining environmental and public health,” Martineau said. “These loans will help keep our communities moving forward, and the principal forgiveness provisions help local communities accomplish this work in difficult economic times.”
The Department of Environment and Conservation administers the SRF Loan Program for the state of Tennessee in conjunction with the Tennessee Local Development Authority. The U.S. Environmental Protection Agency provides grants to fund the program, and the state provides a 20 percent match. Loan repayments are returned to the program and are used to fund future SRF loans.
The funding order of projects is determined by the SRF Loan Program’s Priority Ranking Lists that rank potential projects according to the severity of their pollution and/or compliance problems or for the protection of public health.
Wastewater Loans were announced today for the following recipients:
City of McMinnville (Warren County) – The City of McMinnville will receive $4,000,000 for a Wastewater Treatment Plant Improvements project which includes headwork screens and grit removal, concrete basins, aeration equipment, electrical upgrades and SCADA system, and laboratory upgrades. The project will be funded with a 20-year, $3,800,000 loan, with an interest rate of 0.88%, and $200,000 in principal forgiveness that will not have to be repaid.
Town of Smyrna (Rutherford County) – The Town of Smyrna will receive $2,896,278 for a Collection System Relocation and Expansion project along SR266 to the I-840 Interchange. The project will be funded with a 30-year, $2,693,539 loan, with an interest rate of 1.24%, and $202,739 in principal forgiveness that will not have to be repaid.
Drinking Water Loans were announced today for the following recipients:
Town of Englewood (McMinn County) – The Town of Englewood will receive $775,000 for a Water Treatment Plant Improvements project which includes replacement of raw water pumps, filter improvements, electrical upgrades and other misc. improvements. The project will be funded with a 20-year, $542,500 loan, with an interest rate of 0.20%, and $232,500 in principal forgiveness that will not have to be repaid.
Town of Smyrna (Rutherford County) – The Town of Smyrna will receive $1,950,600 for a Waterline Relocation and Expansion project along SR266 to the I-840 Interchange. The project will be funded with a 20-year, $1,462,950 loan, with an interest rate of 1.00%, and $487,650 in principal forgiveness that will not have to be repaid.
Town of Troy (Obion County) – The Town of Troy will receive $275,000 for a Water Distribution System New Water Line project. The project will be funded with a 20-year, $192,500 loan, with an interest rate of 0.43%, and $82,500 in principal forgiveness that will not have to be repaid.
Traditional Wastewater Loans were announced today for the following recipients:
Hallsdale-Powell UD (Union/Anderson/Knox Counties) – Hallsdale-Powell UD will receive a loan increase of $3,800,000 for improvements and upgrades to the Raccoon Valley Wastewater Treatment Plant and the Beaver Creek Wastewater Treatment Plant. These additional funds will increase the total loan to $8,600,000. This loan will be funded for a 20-year term with an interest rate of 0.95%.
City of Lenoir City (Loudon County) – The City of Lenoir City will receive $1,833,160 for an Infiltration & Inflow Correction project (Phase I-SSES and Phase II Collection System Rehabilitation). This loan will be funded for a 20- year term with an interest rate of 1.33%.
A Traditional Drinking Water Loan was announced today for the following recipients:
Town of Smyrna (Rutherford County) –The Town of Smyrna will also receive $668,721 for the Waterline Relocation and Expansion project along SR266 to the I-840 Interchange. This loan will be funded for a 20-year term with an interest rate of 1.00%.
Since its inception in 1987, Tennessee’s Clean Water State Revolving Fund Loan Program has awarded more than $1.6 billion in low-interest loans. Since its inception in 1996, Tennessee’s Drinking Water State Revolving Fund Loan Program has awarded more than $258 million in low-interest loans. Both programs combined award more than $90 million annually to Tennessee’s local governments for water and wastewater infrastructure projects.
Any local government interested in the SRF Loans, should contact the State Revolving Fund Loan Program, Tennessee Tower, 12th Floor, 312 Rosa L. Parks Avenue, Nashville, TN 37243, or call (615) 532-0445. Additional information about the SRF Loan Program may be found online at www.tn.gov/environment/srf.