Seven Water, Sewer Infrastructure Projects Totaling $5.6 Million Approved for Georgia Communities
| Tuesday, November 17, 2009 |
Contact: Office of Communications 404-651-7774, Shane Hix, GEFA, (404) 584-1043/(404) 769-6949
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ATLANTA – Governor Sonny Perdue today announced the approval of seven environmental infrastructure project loans totaling almost $5.7 million. Five of the projects were either fully or partially financed by the American Recovery and Reinvestment Act (ARRA) at a total of almost $3 million. The GEFA board of directors approved the commitments to help finance water and sewer infrastructure projects in seven 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 and sewer 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:
Douglasville-Douglas County Water and Sewer Authority
Financed through the ARRA, the Douglasville-Douglas County Water and Sewer Authority was approved for a green project through the Clean Water State Revolving Fund (CWSRF). The loan of $120,000 and a CWSRF subsidy of $180,000 were approved to fund a rebate program to replace inefficient residential toilets with water-conserving units. The total project cost is $300,000 with GEFA providing the entire amount. Consistent with GEFA’s ARRA financing terms for green projects, 60 percent (up to a maximum of $180,000) of the principal will be forgiven, subject to the loan contract provisions. The authority will pay three percent interest on the loan portion, up to a maximum of $120,000, for 20 years.
ElbertCounty
Elbert County was approved for a Drinking Water State Revolving Fund (DWSRF) loan of $1,500,000 to help finance the establishment of a public water system. The county will pay three percent interest on the 20-year loan. The total project cost is $1,500,000 with GEFA providing the entire amount.
City of Ila
The city of Ila was approved for a Drinking Water State Revolving Fund (DWSRF) loan of $400,000 and a subsidy of $400,000 to help finance water system improvements including development of a well, water main replacement, new meters and the replacement and repair of fire hydrants. The city will pay no interest on the 20-year loan. The total project cost is $800,000 with GEFA providing the entire amount.
PauldingCounty
Financed through the ARRA, Paulding County was approved for a green project through the Clean Water State Revolving Fund (CWSRF). The loan of $660,000 and a CWSRF subsidy of $990,000 were approved to install a reuse-water main, construct a pump station and chlorinator, and convert a concrete tank to a reuse-water storage tank. The total project cost is $1,785,000 with the Paulding County Renewal and Extension Fund providing $135,000. Consistent with GEFA’s ARRA financing terms for green projects, 60 percent (up to a maximum of $990,000) 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 $660,000, for 20 years.
PickensCounty
Pickens County was approved for a Drinking Water State Revolving Fund (DWSRF) loan of $995,000 which includes $615,000 financed through the ARRA. The ARRA portion of the loan includes a DWSRF subsidy of $246,000. The loan and subsidy will help finance the construction of a 500,000 gallon elevated water storage tank. GEFA’s commitment also includes $380,000 financed by a regular DWSRF loan. Consistent with GEFA’s ARRA financing terms for communities that are not OneGeorgia-eligible, 40 percent ($246,000) of the principal on the ARRA portion of the loan will be forgiven and the city will pay three percent interest on a 20-year loan of $369,000. The non-ARRA DWSRF loan of $380,000 that finances the remainder of the project is also a 20-year loan with a three percent interest rate. The total project cost is $995,000 with GEFA providing the entire amount.
City of Smithville
Financed through the ARRA, the city of Smithville was approved for a Drinking Water State Revolving Fund (DWSRF) loan of $175,680 and a DWSRF subsidy of $117,120 for the construction of a new well. The total project cost is $292,800 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 $117,120) 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 $175,680, for 20 years.
City of Waycross
Financed through the ARRA, the city of Waycross was approved for a green project through the Clean Water State Revolving Fund (CWSRF). The loan of $53,600 and a CWSRF subsidy of $80,400 were approved to install a floating screen to trap and collect litter generated by storm water runoff before reaching the Satilla River. The total project cost is $134,000 with GEFA providing the entire amount. Consistent with GEFA’s ARRA financing terms for green projects, 60 percent (up to a maximum of $80,400) 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 $53,600, for 10 years.
Cities and counties interested in more information regarding GEFA loans should visit www.gefa.org or call (404) 584-1000.
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