GEFA Approves Five Water, Sewer Infrastructure Projects Totaling $6.7 Million for Georgia Communities

Governor Sonny Perdue announced October 20 the approval of five environmental infrastructure project loans totaling just over $6.7 million. Two of the projects were fully financed by the American Recovery and Reinvestment Act (ARRA) at a total of $936,550. The GEFA board of directors approved the commitments to help finance water and sewer infrastructure projects in five 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 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 total costs 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:

Eatonton-Putnam County Water and Sewer Authority (WSA)

Financed through the ARRA, Eatonton-Putnam County WSA was approved for a green project through the Drinking Water State Revolving Fund (DWSRF). The loan of $128,620 and a DWSRF subsidy of $192,930 were approved to upgrade commercial and residential water meters to increase meter reading accuracy. The total project cost is $321,550 with GEFA providing the entire amount. Consistent with GEFA’s ARRA financing terms for green projects, 60 percent (up to a maximum of $192,930) of the principal will be forgiven, subject to the loan contract provisions. The Eatonton-Putnam County WSA will pay three percent interest on the loan portion, up to a maximum of $128,620, for 20 years.

City of Hagan

The city of Hagan was approved for a Georgia Fund loan of $110,000 to help finance a new well, pump and pumphouse for the city’s water system. The city will pay 3.81 percent interest rate on the 15-year loan. The total project cost is $220,000 with a grant of $110,000 from the Georgia Department of Community Affairs providing the remainder.

Macon Water Authority

The Macon Water Authority was approved for a Georgia Fund loan of $5,100,348 to help finance new lines in the city’s sanitary sewer system. The Macon Water Authority will pay a 3.81 percent interest rate on the 20-year loan. The total project cost is $5,100,348 with GEFA financing the entire amount.

City of Waleska

Financed through the ARRA, the city of Waleska was approved for a Drinking Water State Revolving Fund (DWSRF) loan of $369,000 and a DWSRF subsidy of $246,000 for the replacement of water mains. The total project cost is $615,000 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 $246,000) 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 $369,000, for 20 years.

City of Walthourville

The city of Walthourville was approved for a Georgia Fund loan of $556,500 for a new well, well house and chemical feed equipment. The city will pay 3.81 percent interest rate on the 20-year loan. The total project cost is $556,500 with GEFA financing the entire amount.

-----
www.fayettefrontpage.com
Fayette Front Page
www.georgiafrontpage.com
Georgia Front Page