Springfield Approved For 7.5M State Loan To Upgrade Water System
SPRINGFIELD TENNESSEE: (Smokey Barn News) – Tennessee Gov. Bill Haslam and Tennessee Department of Environment and Conservation Commissioner Shari Meghreblian announce that four communities have been approved to receive approximately $16.7 million in low-interest loans for water and wastewater infrastructure improvements.
The loans include funds for the City of Springfield. The city will receive a loan in the amount of $7,500,000 for collection system replacement, infiltration/inflow correction, and construction of two wastewater storage tanks. The project is funded from the State Revolving Fund with a 20-year repayment period and an interest rate of 1.30 percent.
“Abundant, clean water is essential to the quality of life in Tennessee, and we are pleased to make these low-interest loans available to communities with infrastructure needs,” Haslam said. “This program helps communities in ways that will benefit citizens for generations to come.”
Tennessee’s Clean Water State Revolving Fund Loan Program has awarded more than $2 billion in low-interest loans since its inception in 1987. Tennessee’s Drinking Water State Revolving Fund Loan Program has awarded more than $308.55 million in low-interest loans since its inception in 1996.
“These programs have helped communities make updates they need, and we are glad the loans can assist,” Meghreblian said. “Clean water is a vitally important resource, and this loan program has proved valuable in making much-needed improvements.”
Through the State Revolving Fund 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 also include a principal forgiveness component.
The Department of Environment and Conservation administers the State Revolving Fund Program 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 program’s priority ranking lists that rank potential projects according to the severity of the pollution and/or compliance problems or for the protection of public health.
The loans announced include funds for Hamilton County, the Ocoee Utility District and the Smith Utility District.
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