$2 Million in Savings Announced for 14 Communities and Municipalities
The Iowa Finance Authority and the Iowa Department of Natural Resources today announced that 14 communities and municipalities with current State Revolving Fund loans for water quality projects will save a total of nearly $2 million in interest over the remaining life of their loans as a result of their interest rate being reduced from 3% to 1.75%.
The State Revolving Fund is one of Iowa’s primary sources for financing projects designed to improve Iowa’s water quality. Two funds, one for drinking water and one for wastewater and pollution control, have provided low-cost financing to projects in 700 Iowa communities in addition to farmers, watershed groups and others for water quality projects. The program is jointly administered by the Iowa Finance Authority and the Iowa Department of Natural Resources.
“THE WATER QUALITY FINANCING PROGRAMS OFFERED THROUGH THE STATE REVOLVING FUND PLAY A SIGNIFICANT ROLE IN HELPING COMMUNITIES ADVANCE WATER QUALITY IMPROVEMENTS,” SAID IOWA FINANCE AUTHORITY EXECUTIVE DIRECTOR DEBI DURHAM.
“Not only does this financing allow critical water projects to move forward but Iowa communities and municipalities have realized a total savings of more than $87 million through interest rate reductions through the program.”
“The City of Redfield has realized a savings of nearly $70,000 through the interest rate reduction on our State Revolving Fund water quality loan,” said Redfield Mayor Wade Reed. “This is a significant amount of savings for our community that we can now reallocate to other priorities.”
“We are proud to play a role assisting communities of all sizes in upgrading their water infrastructure through affordable financing programs,” said Iowa Department of Natural Resources Director Kayla Lyon. “This is an exciting opportunity, especially in light of the Clean Water Act’s 50th anniversary.”
Besides offering communities low interest rates to finance water infrastructure projects, the State Revolving Fund offers other benefits, such as lower up-front costs and no reserve requirement.
For more information on the State Revolving Loan program, visit IowaSRF.com.
The Iowa Finance Authority administers the State Revolving Fund (SRF) in partnership with the Iowa Department of Natural Resources. The SRF assists communities with the costs of upgrading or constructing public wastewater and drinking water infrastructure projects
Communities | Municipalities with Recent Interest Rate Reductions:
| BORROWER | SAVINGS |
| City of Council Bluffs | $215,313 |
| City of Donnellson | $7,925 |
| City of Lansing | $20,550 |
| City of Neola | $146,350 |
| City of Pisgah | $46,900 |
| City of Reasnor | $13,250 |
| City of Redfield | $69,675 |
| City of Saint Ansgar | $16,800 |
| City of St. Charles | $12,288 |
| City of Washington | $317,763 |
| Des Moines Wastewater Reclamation Authority | $312,775 |
| Harlan Municipal Utilities | $315,838 |
| Rathbun Regional Water Association | $151,550 |
| Total Savings: | $1,698,200 |