Governor Perdue Announces $43.8 Million in Loans to Finance Water, Sewer and Reservoir Infrastructure Improvements

Monday, February 18, 2008

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

GEFA Board of Directors Approves Loan Package Today

ATLANTA – Today Governor Sonny Perdue announced the approval of four Georgia Fund loans totaling $43,841,723 to finance water, sewer and reservoir infrastructure improvements by the Georgia Environmental Facilities Authority’s (GEFA) Executive Committee.  The GEFA approved loans will help fund projects for the cities of Guyton, LaFayette, and Pelham, and the Cobb County-Marietta Water Authority.        

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

“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.”

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 projects that we agreed to finance today show how GEFA helps communities of all sizes, in all areas of the state,” said J.C. Warren, chairman of the GEFA Board of Directors and a member of the Screven County Board of Commissioners.  “From the smallest of communities to the largest, GEFA is investing in communities that are willing to invest in themselves.”

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

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

City of Guyton

The city of Guyton was approved for a Georgia Fund loan of $13,349,950 to help finance the construction of 500,000 gallons-per-day wastewater treatment facility.  The city will pay 4.1 percent interest on the 20-year loan.  The total project cost is $13,349,950 with GEFA providing the entire amount.

City of LaFayette

The city of LaFayette was approved for a Georgia Fund loan of $4,962,000 to help finance improvements to the water distribution system, including a three million gallon storage reservoir.  The city will pay 4.1 percent interest on the 20-year loan.  The total project cost is $4,962,000 with GEFA providing the entire amount.

City of Pelham

The city of Pelham was approved for a Georgia Fund loan of $949,240 to help finance the expansion of the city’s land application system.  The city will pay 4.1 percent interest on the 20-year loan.  The total project cost is $949,240 with GEFA providing the entire amount.

Cobb County-Marietta Water Authority

The Cobb County-Marietta Water Authority was approved for a Georgia Fund loan of $24,580,533 to help finance the second phase of construction on a 369-acre water supply reservoir.  A Georgia Fund loan of $35 million was approved for the first phase of construction on May 24, 2006.  The authority will pay 4.1 percent interest on the 30-year loan.  The total project cost is $72,773,906 with GEFA providing $59,580,533 and the Cobb County-Marietta Water Authority providing $13,193,373.

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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