Governor Perdue Announces $19.5 Million in Loans and Grants to Finance Water and Sewer System Infrastructure Improvements

Tuesday, May 20, 2008

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

GEFA Board of Directors Approves Loan and Grant Package Today

ATLANTA – Today Governor Sonny Perdue announced the approval of four Georgia Fund commitments totaling $2,749,923, one Drinking Water State Revolving Fund (DWSRF) commitment totaling $1,750,000 and one Clean Water State Revolving Fund (CWSRF) commitment totaling $15,000,000.  The Georgia Environmental Facilities Authority’s (GEFA) Board of Directors approved the loans and grants to help finance water and sewer infrastructure projects for the Madison County Industrial Development & Building Authority, Lake Lanier Islands Development Authority, and the cities of Cornelia, Millen, Statham and West Point.

“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 and sewer infrastructure.” 

“GEFA’s 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 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 recommended and the General Assembly approved Amended FY2008 and FY2009 budget appropriations of $120 million for water infrastructure and reservoir development.

“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.”

GEFA helps communities prepare for economic growth and development through the provision of low interest loans and grants.  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 DWSRF and CWSRF are federal loan programs administered by GEFA for drinking water and wastewater infrastructure projects respectively.   Eligible projects include a wide variety of public health-related water supply, wastewater collection and treatment projects. 

Details of the loans and grants approved today are below:

 

Madison County Industrial Development & Building Authority

 

The Madison County Industrial Development & Building Authority was approved for a DWSRF loan of $1,365,000 and a subsidy of $385,000 to help finance the construction of new water mains to provide interconnections to the county’s Hull and Madico systems, the construction of new water mains to serve additional areas of the county and maintain water pressures within the system, and the construction of new wells to provide additional supply.  The Madison County Industrial Development & Building Authority will pay zero percent interest on the 20-year loan.  GEFA is financing the entire estimated cost of $1,750,000.

 

Lake Lanier Islands Development Authority

 

The Lake Lanier Islands Development Authority (LLIDA) was approved for a CWSRF loan of $15,000,000 for the construction of a new 500,000 gallon-per-day wastewater treatment plant.  LLIDA will pay 3.75 percent interest on the 15-year loan.  GEFA is financing the entire estimated cost of $15,000,000.

 

City of Cornelia

 

The city of Cornelia was approved for a Georgia Fund sewer grant of $100,000 to help finance a sewer extension to residents who are currently on septic tanks.  Sixty homes in the area will be able to discontinue the use of septic tanks.  The total project cost is $1,215,071 with GEFA providing $100,000 in a sewer grant, the Department of Community Affairs providing $500,000 in a Community Development Block Grant and the city of Cornelia providing $615,071 in local funds.

 

City of Millen

 

The city of Millen was approved for a Georgia Fund sewer grant of $99,623 to help finance a sewer extension to residents who are currently on septic tanks.  Eighteen homes in the area will be able to discontinue the use of septic tanks.  GEFA is financing the entire estimated cost of $99,623.

 

City of Statham

 

The city of Statham was approved for a Georgia Fund sewer grant of $100,000 to help finance a sewer extension to residents who are currently on septic tanks.  One hundred fifty-three homes in the area will be able to discontinue the use of septic tanks.  The total project cost is $3,036,273, with GEFA providing $2,790,000 in a previously approved Georgia Fund Loan and the city providing $146,273 in local funds.

 

City of West point

 

The city of West Point was approved for a Georgia Fund loan of $2,450,300 to help finance the construction of water and sewer lines to support economic development in the city.  The city will pay 4.1 percent interest on the 20-year loan.  The total cost is $3,950,300 with two OneGeorgia grants totaling $1,500,000 providing the balance.

 

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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