Georgia Governor Sonny Perdue - GEFA Approves 22 Water, Sewer Infrastructure Projects Totaling $41 Million for Georgia Communities

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GEFA Approves 22 Water, Sewer Infrastructure Projects Totaling $41 Million for Georgia Communities

Tuesday, August 25, 2009

Contact: Office of Communications 404-651-7774, Shane Hix, GEFA (404) 584-1043 / (404) 713-7850

ATLANTA – Governor Sonny Perdue announced today the approval of 22 environmental infrastructure project loans totaling $41 million. Sixteen of the projects were either fully or partially financed by the American Recovery and Reinvestment Act (ARRA) at a total of $33.7 million. The GEFA board of directors approved the commitments to help finance water and sewer infrastructure projects in 22 communities throughout Georgia.

“Investment in our state’s water and sewer infrastructure stimulates the economy, promotes the stewardship of our natural resources, and helps to meet Georgia’s future water needs,” said Governor Perdue. “The projects approved today will improve water system efficiency and will ensure clean and safe water.”

“The federal water and sewer programs administered by GEFA assist local governments with improving their environmental infrastructure,” said GEFA Executive Director Phil Foil. “Financing water and sewer projects encourages economic growth and the stewardship of our environment.”

Foil expressed appreciation to Governor Perdue, Georgia’s Congressional delegation and the members of the General Assembly for their support. He credited Governor Perdue’s commitment to helping Georgia cities and counties finance infrastructure development as one of the main contributors to GEFA’s success.

“The projects that we agreed to finance today illustrate how GEFA helps communities of all sizes, in all areas of the state,” said Matt Beasley, chairman of the GEFA board of directors and mayor of the city of Hartwell. “From the smallest of communities to the largest, GEFA is investing in communities that are willing to invest in themselves.”

GEFA helps communities prepare for economic growth and development through the provision of low interest loans. The Clean Water State Revolving Fund (CWSRF) is a federal loan program administered by GEFA for wastewater infrastructure and water pollution abatement projects. Eligible projects include a wide variety of storm water and wastewater collection and treatment projects. The Drinking Water State Revolving Fund (DWSRF) is a federal loan program administered by GEFA for water infrastructure projects. Eligible projects include public health-related water supply construction.

In February, Congress approved and the President signed the ARRA, which included a substantial investment in the CWSRF and the DWSRF programs. The ARRA also directs the states to reserve 20 percent of the ARRA funding for “…projects to address green infrastructure, water or energy efficiency improvements or other environmentally innovative activities.”

Under the ARRA financing terms adopted by the GEFA board of directors, cities or counties that are OneGeorgia-eligible qualify for a 70 percent subsidy. Cities or counties that are not OneGeorgia-eligible qualify for a 40 percent subsidy. Cities or counties with eligible green projects qualify for a 60 percent subsidy. For example, if a OneGeorgia-eligible community applies for a $1 million loan, then 70 percent of the loan will be forgiven, up to a maximum of $700,000, subject to the loan contract provisions. The community will close on a loan of up to$300,000 at a three percent interest rate. OneGeorgia-eligible communities are located outside the state’s metropolitan areas and have a population of 50,000 or less with a poverty rate of ten percent or greater. The unprecedented amounts of subsidy in the ARRA financing terms will help Georgia meet the ARRA’s short-term goals of job creation and economic stimulus.

Georgia local governments expressed a tremendous amount of interest in the ARRA funds. Cities and counties submitted more than 1,600 clean water, drinking water and green projects with a total cost exceeding $6 billion. Total available funding for projects through the ARRA is $144 million. Funding is obligated to projects on a first-come-first-served basis.

Below are details of the loans approved today:

City of Allentown

The city of Allentown was approved for a Georgia Fund loan of $45,275 for improvements to the city’s water system. The city will pay a two percent interest rate on the 10-year loan. The total project cost is $90,550, with a grant of $45,275 from the Georgia Department of Community Affairs (DCA) providing the remainder.

BanksCounty

Financed through the ARRA, Banks County was approved for a Drinking Water State Revolving Fund (DWSRF) loan of $777,480 and a DWSRF subsidy of $1,814,120 for the construction of a new one million gallon clear well, pump station and associated water main. The total project cost is $2,591,600 with GEFA providing the entire amount. Consistent with GEFA’s ARRA financing terms for OneGeorgia-eligible communities, 70 percent (up to a maximum of $1,814,120) of the principal will be forgiven, subject to the loan contract provisions. Banks County will pay three percent interest on the loan portion, up to a maximum of $777,480, for 20 years.

City of Blakely

Financed through the ARRA, the city of Blakely was approved for a Clean Water State Revolving Fund (CWSRF) loan of $486,750 and a CWSRF subsidy of $1,135,750 for the replacement or repair of manholes and sewer mains. The total project cost is $1,622,500 with GEFA providing the entire amount. Consistent with GEFA’s ARRA financing terms for communities that are OneGeorgia-eligible, 70 percent (up to a maximum of $1,135,750) of the principal will be forgiven, subject to the loan contract provisions. The city of Blakely will pay three percent interest on the loan portion, up to a maximum of $486,750, for 15 years.

City of Calhoun

Financed through the ARRA, the city of Calhoun was approved for a green project through the Drinking Water State Revolving Fund (DWSRF). The loan of $600,000 and a DWSRF subsidy of $900,000 were approved for the upgrade of approximately 5,500 water meters to transmit information to a new automated meter reading system. The total project cost is $1,500,000 with GEFA providing the entire amount. Consistent with GEFA’s ARRA financing terms for green projects, 60 percent (up to a maximum of $900,000) of the principal will be forgiven, subject to the loan contract provisions. The city of Calhoun will pay three percent interest on the loan portion, up to a maximum of $600,000, for ten years.

Carroll County Water Authority

Financed through the ARRA, the Carroll County Water Authority was approved for a green project through the Drinking Water State Revolving Fund (DWSRF). The loan of $1,870,000 and a DWSRF subsidy of $2,805,000 were approved for the replacement of 17,000 water meters to transmit information to a new automated meter reading system. The total project cost is $4,675,000 with GEFA providing the entire amount. Consistent with GEFA’s ARRA financing terms for green projects, 60 percent (up to a maximum of $2,805,000) of the principal will be forgiven, subject to the loan contract provisions. The Carroll County Water Authority will pay three percent interest on the loan portion, up to a maximum of $1,870,000, for 20 years.

City of Clayton

Financed through the ARRA, the city of Clayton was approved for a green project through the Drinking Water State Revolving Fund (DWSRF). The loan of $237,320 and a DWSRF subsidy of $355,980 were approved for the replacement of 2,000 water meters and the upgrade of 1,000 water meters to transmit information to a new automated meter reading system. The total project cost is $593,300 with GEFA providing the entire amount. Consistent with GEFA’s ARRA financing terms for green projects, 60 percent (up to a maximum of $355,980) of the principal will be forgiven, subject to the loan contract provisions. The city of Clayton will pay three percent interest on the loan portion, up to a maximum of $237,320, for ten years.

City of Cumming

Financed through the ARRA, the city of Cumming was approved for a Drinking Water State Revolving Fund (DWSRF) loan of $711,884 and a DWSRF subsidy of $474,589 for modifications to the settling basins at the city’s Potable Water Production Facility. The total project cost is $1,186,473 with GEFA providing the entire amount. Consistent with GEFA’s ARRA financing terms for communities that are not OneGeorgia-eligible, 40 percent (up to a maximum of $474,589) of the principal will be forgiven, subject to the loan contract provisions. The city of Cumming will pay three percent interest on the loan portion, up to a maximum of $711,884, for 20 years.

City of Demorest

The city of Demorest was approved for a Georgia Fund loan of $360,000 for improvements to the city’s water system. The city will pay a 3.81 percent interest rate on the 20-year loan. The total project cost is $660,000, with a $300,000 grant from the Appalachian Regional Commission providing the remainder.

Ellijay-GilmerCountyWater and Sewerage Authority

Financed through the ARRA, the Ellijay-Gilmer County Water and Sewerage Authority was approved for a Drinking Water State Revolving Fund (DWSRF) loan of $1,032,227 and a DWSRF subsidy of $2,408,531 for water infrastructure upgrades within the Coosawattee River Resort residential development. The total project cost is $3,440,758 with GEFA providing the entire amount. Consistent with GEFA’s ARRA financing terms for OneGeorgia-eligible communities, 70 percent (up to a maximum of $2,408,531) of the principal will be forgiven, subject to the loan contract provisions. The Ellijay-Gilmer County Water and Sewerage Authority will pay three percent interest on the loan portion, up to a maximum of $1,032,227, for 20 years.

Heard County Water Authority

Financed through the ARRA, the Heard County Water Authority was approved for a Clean Water State Revolving Fund (CWSRF) loan of $30,000 and a CWSRF subsidy of $70,000 for the replacement of the pumps and controls at a wastewater lift station. The total project cost is $100,000 with GEFA providing the entire amount. Consistent with GEFA’s ARRA financing terms for communities that are OneGeorgia-eligible, 70 percent (up to a maximum of $70,000) of the principal will be forgiven, subject to the loan contract provisions. The Heard County Water Authority will pay three percent interest on the loan portion, up to a maximum of $30,000, for five years.

City of Hiawassee

The city of Hiawassee was approved for a Georgia Fund loan of $400,000 for improvements to the city’s sewer system. The city will pay a 3.81 percent interest rate on the 20-year loan. The total project cost is $700,000, with a $300,000 grant from the Appalachian Regional Commission providing the remainder.

City of Lawrenceville

Financed through the ARRA, the city of Lawrenceville was approved for a Drinking Water State Revolving Fund (DWSRF) loan of $990,000 and a DWSRF subsidy of $660,000 for the extension and replacement of water mains. The total project cost is $1,650,000 with GEFA providing the entire amount. Consistent with GEFA’s ARRA financing terms for communities that are not OneGeorgia-eligible, 40 percent (up to a maximum of $660,000) of the principal will be forgiven, subject to the loan contract provisions. The city of Lawrenceville will pay three percent interest on the loan portion, up to a maximum of $990,000, for 20 years.

City of Lula

Financed through the ARRA, the city of Lula was approved for a Clean Water State Revolving Fund (CWSRF) loan of $2,574,144 and a CWSRF subsidy of $6,006,336 for the construction of a wastewater treatment plant. The total project cost is $8,580,480 with GEFA providing the entire amount. Consistent with GEFA’s ARRA financing terms for communities that are OneGeorgia-eligible, 70 percent (up to a maximum of $6,006,336) of the principal will be forgiven, subject to the loan contract provisions. The city of Lula will pay three percent interest on the loan portion, up to a maximum of $2,574,144, for 20 years.

Nicholson Water Authority

The Nicholson Water Authority was approved for a Drinking Water State Revolving Fund (DWSRF) loan of $1,000,000 for the construction of a new well, the rehabilitation of an existing well and the replacement of water mains. The Authority will pay a three percent interest rate on the 20-year loan. The total project cost is $1,000,000 with GEFA providing the entire amount.

City of Rockmart

The city of Rockmart was approved for a Georgia Fund loan of $460,000 for improvements to the city’s water and sewer systems. The city will pay a 3.81 percent interest rate on the 20-year loan. The total project cost is $760,000, with a $300,000 grant from the Appalachian Regional Commission providing the remainder.

City of Savannah

The city of Savannah was approved for a Georgia Fund loan of $5,000,000 for improvements to the city’s sanitary sewer system. The city, a WaterFirst community, will pay a 2.81 percent interest rate on the 20-year loan, one percent lower than the current Georgia Fund rate. WaterFirst communities are certified by DCA as having met and maintained stringent standards for system management and water conservation. Participants are entitled to a lower interest rate on certain GEFA loans. GEFA will consider a phase two loan of $5,000,000 for the project next year.

City of Stockbridge

Financed through the ARRA, the city of Stockbridge was approved for a Drinking Water State Revolving Fund (DWSRF) loan of $2,499,900 and a DWSRF subsidy of $1,666,600 for the replacement of asbestos-cement water mains and the relocation of service connections. The total project cost is $4,166,500 with GEFA providing the entire amount. Consistent with GEFA’s ARRA financing terms for communities that are not OneGeorgia-eligible, 40 percent (up to a maximum of $1,666,600) of the principal will be forgiven, subject to the loan contract provisions. The city of Stockbridge will pay three percent interest on the loan portion, up to a maximum of $2,499,900, for 20 years.

City of Summerville

Financed through the ARRA, the city of Summerville was approved for a green project through the Clean Water State Revolving Fund (CWSRF). The loan of $192,000 and a CWSRF subsidy of $288,000 for the construction of a pump station that transfers treated wastewater for reuse in carpet manufacturing. The total project cost is $480,000 with GEFA providing the entire amount. Consistent with GEFA’s ARRA financing terms for green projects, 60 percent (up to a maximum of $288,000) of the principal will be forgiven, subject to the loan contract provisions. The city of Summerville will pay three percent interest on the loan portion, up to a maximum of $192,000, for 20 years.

City of Suwanee

Financed through the ARRA, the city of Suwanee was approved for a Drinking Water State Revolving Fund (DWSRF) loan of $288,026 and a DWSRF subsidy of $192,018 for the construction of a new well and the replacement of water lines. The total project cost is $480,044 with GEFA providing the entire amount. Consistent with GEFA’s ARRA financing terms for communities that are not OneGeorgia-eligible, 40 percent (up to a maximum of $192,018) of the principal will be forgiven, subject to the loan contract provisions. The city of Suwanee will pay three percent interest on the loan portion, up to a maximum of $288,026, for 15 years.

City of Tennille

Financed through the ARRA, the city of Tennille was approved for a green project through the Drinking Water State Revolving Fund (DWSRF). The loan of $100,000 and a DWSRF subsidy of $150,000 were approved for the replacement of approximately 780 aging water meters with electronic meters. The financing will also fund a system-wide leak detection study. The total project cost is $250,000 with GEFA providing the entire amount. Consistent with GEFA’s ARRA financing terms for green projects, 60 percent (up to a maximum of $150,000) of the principal will be forgiven, subject to the loan contract provisions. The city will pay three percent interest on the loan portion, up to a maximum of $100,000, for 10 years.

City of Tifton

Financed through the ARRA, the city of Tifton was approved for a green project through the Clean Water State Revolving Fund (CWSRF). The loan of $800,000 and a CWSRF subsidy of $1,200,000 were approved for the upgrade of wastewater treatment equipment with a system that reduces maintenance efforts and lowers operating costs. The total project cost is $2,000,000 with GEFA providing the entire amount. Consistent with GEFA’s ARRA financing terms for green projects, 60 percent (up to a maximum of $1,200,000) of the principal will be forgiven, subject to the loan contract provisions. The city of Tifton will pay three percent interest on the loan portion, up to a maximum of $800,000, for 20 years.

City of Villa Rica

Financed through the ARRA, the city of Villa Rica was approved for a Drinking Water State Revolving Fund (DWSRF) loan of $255,000 and a DWSRF subsidy of $170,000 for the installation of water mains. The total project cost is $425,000 with GEFA providing the entire amount. Consistent with GEFA’s ARRA financing terms for communities that are not OneGeorgia-eligible, 40 percent (up to a maximum of $170,000) of the principal will be forgiven, subject to the loan contract provisions. The city of Villa Rica will pay three percent interest on the loan portion, up to a maximum of $255,000, for 15 years.

Cities and counties interested in more information regarding GEFA loans should visit www.gefa.org or call (404) 584-1000.

The Georgia Environmental Facilities Authority (GEFA) provides financial assistance and administers programs that encourage stewardship of the environment and promote economic development statewide. GEFA is the lead state agency for energy planning and alternative fuels; manages the Governor’s Energy Challenge and the Georgia Land Conservation Program; maintains state-owned fuel storage tanks; and offers financing for reservoir and water supply, water quality, storm water and solid waste infrastructure.

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