Governor Perdue Announces $31.7 Million in Loans to Finance Water, Sewer and Reservoir Infrastructure Improvements

Tuesday, January 29, 2008

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

GEFA Board of Directors Approves Loan Package Today

ATLANTA –Governor Sonny Perdue announced today the approval of $31.7 million in loans to finance water, sewer and reservoir infrastructure improvements, including nine Georgia Fund loan agreements totaling $21.1 million and a Clean Water State Revolving Fund loan of $10.6 million. The Georgia Environmental Facilities Authority (GEFA) Board of Directors approved loans to help finance water, sewer and reservoir infrastructure projects for the cities of Carrollton, Jefferson, LaGrange, Manchester, Sylvania, Tybee Island, and Union Point and for Banks, Henry and Rabun counties.

“Infrastructure improvements increase the quality of life for Georgia citizens, and they help cities and counties create jobs and promote economic development,” said Governor Sonny Perdue. “I’m pleased these investments are being made in water, sewer and reservoir infrastructure.”

“GEFA’s loan programs are a tangible commitment by Governor Perdue and the General Assembly to assist local governments across the state with their efforts to provide clean water and sewer improvements,” said GEFA Executive Director Chris Clark. “In addition to the public’s health and safety, these projects are critical to a community’s ability to prosper economically.”

Governor Perdue’s Amended FY08 and FY09 budget recommendations include a total of $120 million for water infrastructure and reservoir development.

GEFA helps communities prepare for economic growth and development through the provision of low interest loans. The Georgia Fund is a state funded loan program administered by GEFA for water, wastewater and solid waste infrastructure projects. The loan program has maximum flexibility and accessibility, providing fast loan approvals. The Georgia Fund finances loans to local governments for projects such as water and sewer lines, treatment plants, pumping stations, wells, water storage tanks and water meters. Low interest loans from this program range from $20,000 to $50 million.

The Clean Water State Revolving Loan Fund (CWSRF) is a federal loan program administered by GEFA that provides funding for a variety of wastewater infrastructure projects and non-point source projects. Eligible projects include virtually all water quality and wastewater treatment projects.

Details of the loans and grants approved today are provided below:

 

City of Carrollton

 

The city of Carrollton was approved for a Georgia Fund loan of $7,568,728 to help finance water and sewer system improvements, including upgrades to the city’s water treatment plant and sewer line extensions. The city will pay 4.1 percent interest on the 20-year loan. The total project cost is $7,568,728 with GEFA providing the entire amount.

 

City of Jefferson

 

The city of Jefferson was approved for a Georgia Fund loan of $1,000,000 to help finance improvements to the existing Curry Creek Reservoir in order to address current drought conditions. The city will pay 3.68 percent interest on the 20-year loan. The total project cost is $1,300,000 with the Department of Community Affairs providing a block grant of $100,000 and $200,000 in local funds.

 

City of LaGrange

 

The city of LaGrange was approved for a Georgia Fund loan of $1,000,000 to help finance the construction of 30,000 feet of water line to supply wholesale water to the city of Hogansville. The city will pay 4.1 percent interest on the 20-year loan. The total project cost is $1,000,000 with GEFA providing the entire amount.

 

City of Manchester

 

The city of Manchester was approved for a Georgia Fund loan of $2,060,608 to help finance improvements to the city’s wastewater treatment facility. The city will pay 4.1 percent interest on the 20-year loan. The total project cost is $2,060,608 with GEFA providing the entire amount.

 

City of Sylvania

 

The city of Sylvania was approved for a Georgia Fund loan of $228,000 to help finance the extension of water and sewer lines to serve a new hotel and small shopping center planned for development. The city will pay 4.1 percent interest on the 10-year loan. The total project cost is $253,000 with the city providing $25,000 in local funds.

 

City of Tybee Island

 

The city of Tybee Island was approved for a Georgia Fund loan of $1,299,333 to help finance the replacement of deteriorating water lines. The city will pay 3.1 percent interest on the 20-year loan. As a WaterFirst community, the city qualified for a one percent reduction in the Georgia Fund interest rate. The total project cost is $2,300,000 with $1,000,667 provided from SPLOST funds.

 

City of Union Point

 

The city of Union Point was approved for a Georgia Fund loan of $694,000 to provide interim financing for water system improvements. The city will pay 4.1 percent interest on the loan. The total project cost is $1,510,220 with USDA providing an $816,220 grant and a $694,000 loan. The GEFA loan is for interim financing of the USDA loan portion of $694,000.

 

Banks County

 

Banks County was approved for a Georgia Fund loan of $858,725 to help finance water system improvements and the replacement of approximately 32,850 linear feet of water line. The county will pay 4.1 percent interest on the 20-year loan. The total project cost is $858,725 with GEFA providing the entire amount.

 

Henry County

 

Henry County was approved for a Clean Water State Revolving Fund loan of $10,603,000 to help finance the construction of a new 225,000 gallons-per-day wastewater treatment plant and land application system. The county will pay three percent interest on the 20-year loan. The total project cost is $10,603,000 with GEFA providing the entire amount.

 

Rabun County

 

Rabun County was approved for a Georgia Fund loan of $6,415,000 to help the county purchase existing water and wastewater treatment facilities that are part of the former Fruit of the Loom manufacturing facility. Rabun County will upgrade the wastewater facilities to meet municipal standards and will construct a new water treatment facility. The county will pay 4.1 percent interest on the 20-year loan. The total project cost is $6,415,000 with GEFA providing the entire amount.

 

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

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