Iowa communities to save through state revolving fund11/29/2016
The Iowa Finance Authority and the Iowa Department of Natural Resources today announced that 29 Iowa communities with current State Revolving Fund loans for water quality projects will save a total of more than $1.3 million in interest over the remaining life of their loans as a result of the their interest rate being reduced from 3 percent to 1.75 percent.
The State Revolving Fund is one of Iowa’s primary sources for financing projects designed to improve Iowa’s water quality. Two funds, one for drinking water and one for wastewater and pollution control, have provided low-cost financing to projects in 600 Iowa communities as well as to farmers, watershed groups and others for water quality projects. The program is jointly administered by the Iowa Finance Authority and the Iowa Department of Natural Resources.
“The State Revolving Fund has saved Iowa communities nearly $16 million in interest payments by reducing the interest rate for loans that are more than ten years old,” said Iowa Finance Authority Executive Director Dave Jamison. “This rate reduction is possible due to the success of the State Revolving Fund programs and excellent financial management, ultimately keeping millions of dollars in local economies all across the state.”
“The recent State Revolving Fund interest rate reduction translates to a $127,000 savings for the City of Fairfax,” said Cynthia Stimson, City of Fairfax City Clerk/Treasurer. “We’ve found the State Revolving Fund to be the most affordable option for completing our water quality projects and keeping rates low for Fairfax residents.”
“The State Revolving Fund is a successful partnership between state and local governments and we are proud to play a role in assisting communities with important water quality initiatives,” said Iowa Department of Natural Resources Director Chuck Gipp.
Besides offering the low interest rates to finance water infrastructure projects, the State Revolving Fund offers other benefits to Iowa communities, such as lower up-front costs and no reserve requirement.
For more information on the State Revolving Loan program, visit IowaSRF.com.