State Revolving Fund Assists Communities with Water Quality Projects
Des Moines – Twenty-three Iowa communities will move water quality projects forward with the support of a combined total of more than $40.4 million in low-cost water quality loans. The financing is made available through Construction and Planning & Design Loans through the State Revolving Fund.
Construction Loans are a low-cost construction financing option available for Iowa cities and municipalities for water quality initiatives. Planning & Design Loans are zero percent loans that assist with the first-phase of project expenses. The Iowa Finance Authority and the Iowa Department of Natural Resources jointly administer the State Revolving Fund in Iowa.
“The Iowa Finance Authority is committed to enhancing the quality of life for Iowans and one way we do this is by providing communities with access to affordably maintain and update water systems,” said Iowa Finance Authority Executive Director Dave Jamison. “The State Revolving Fund provided low-cost financing for water quality infrastructure improvements benefiting one million Iowans in last fiscal year alone.”
“The State Revolving Fund plays a vital role in advancing water quality improvements throughout Iowa,” said Iowa Department of Natural Resources Director Chuck Gipp. “The recent awardees join more than 500 other Iowa cities in recognizing the State Revolving Fund as their best choice for financing of their water quality initiatives.”
The State Revolving Fund has awarded Iowa communities and municipalities with more than $2.5 billion in Construction Loans and nearly $150 million through Planning & Design Loans since the program’s inception.
“The City of Cascade recently received a $9.1 million construction loan from the State Revolving Fund to finance our sewer treatment and improvement initiative,” said Deanna McCusker, Cascade City Administrator. “The State Revolving Fund’s low interest rate and favorable terms will result in significant savings while helping us meet the water quality needs of our community.”
The U.S. Environmental Protection Agency provides annual capitalization grants to states. Leveraged bonds and loan repayments expand the reach of the federal investment. More than $3 in assistance has been leveraged for Iowa water quality projects for every $1 of federal funds.
More information is available at 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 local wastewater and drinking water infrastructure projects.
