$11 million in Savings Announced for 22 Communities and Municipalities with Water Quality Projects Financed through the State Revolving Fund
The Iowa Finance Authority and the Iowa Department of Natural Resources recently announced that 22 communities and municipalities, including Red Oak, with current State Revolving Fund loans for water quality projects will save a total of more than $11 million in interest over the remaining life of their loans as a result of their interest rate being reduced from 3 percent to 1.75 percent.
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 nearly 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 nearly $60 million through interest rate reductions through the program.”
The City of Red Oak will realize a savings of $191,937 through the interest rate reduction on our State Revolving Fund water quality loan.
“We’re appreciative of the interest rate reduction that will allow us to reallocate these funds to other community priorities.”
“We are proud to play a role in assisting communities and municipalities of all sizes upgrade their water infrastructure through affordable and innovative financing programs,” said Iowa Department of Natural Resources Director Kayla Lyon. “These investments will pay dividends for Iowans for years to come.”
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.