GEFA Approves Environmental Infrastructure Projects Totaling $6.9 Million for Seven Georgia Communities

As part of Governor Sonny Perdue’s vision for sustainable economic development, the Georgia Environmental Finance Authority (GEFA) announced yesterday the approval of financing for seven environmental infrastructure projects totaling $6,9 million. The GEFA board of directors approved the commitments to help finance water and wastewater system infrastructure improvements for the Henry County Water & Sewerage Authority (HCWSA), and the cities of Commerce, Jasper, Marshallville, Poulan, Ringgold and Thomasville.

“Investment in our state’s water 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 water programs administered by GEFA assist local governments with improving their environmental infrastructure,” said GEFA Executive Director Kevin Clark. “Financing water projects encourages economic growth and the stewardship of our environment.”

Clark expressed appreciation to Governor Perdue and to 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.

“GEFA financing for water infrastructure helps communities in all areas of the state,” said J.C. Warren, acting chairman of the GEFA board of directors and member of the Screven County Board of Commissioners. “The projects that we agreed to finance today demonstrate that 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 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.

The Georgia Fund is a state-funded program administered by GEFA for water, wastewater and solid waste infrastructure projects. The program has maximum flexibility and accessibility, and offers fast loan and grant approvals. The Georgia Fund provides loans and grants 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 are available up to $3 million.

Below are details of the loans approved:

City of Commerce
The city of Commerce was approved for a Drinking Water State Revolving Fund (DWSRF) loan of $575,000 to finance leak detection equipment, leak repairs and the replacement of old water meters. The city of Commerce will pay three percent interest on the one-year loan for $575,000. As a green project, 50 percent of the principal amount drawn will be forgiven. The 2010 DWSRF program guidelines direct the states to reserve 20 percent of the DWSRF funding for projects that address water or energy efficiency improvements or other environmentally-innovative activities.

Henry County Water & Sewerage Authority (HCWSA)

Henry County Water & Sewerage Authority was approved for a Drinking Water State Revolving Fund (DWSRF) loan of $2,652,000 to finance water main construction. HCWSA will pay three percent interest on the 20-year loan for $2,652,000 with 30 percent of the principal amount drawn to be forgiven.

City of Jasper

The city of Jasper was approved for a Georgia Fund loan of $700,000 to finance a new 500,000 gallon elevated water tank and the installation of a water line along a portion of Georgia Highway 515. The city of Jasper will pay 3.81 percent interest on the 20-year loan for $700,000. The balance of the project, $300,000, will be provided in the form of an Appalachian Regional Commission Grant from the Georgia Department of Community Affairs.

City of Marshallville

The city of Marshallville was approved for a Georgia Fund loan of $311,484 to finance a new water filtration system. The city of Marshallville will pay 3.81 percent interest on the 15-year loan for $311,484.

City of Poulan

The city of Poulan was approved for a Drinking Water State Revolving Fund (DWSRF) loan of $400,000 to finance water main construction to improve flow and pressure in the city’s water system. The city of Poulan will pay three percent interest on a 15-year loan for $400,000, with $107,337 in principal forgiveness.

City of Ringgold

The city of Ringgold was approved for a Georgia Fund Sewer Grant of $29,335.68 to finance construction of a sanitary sewer system that will serve 65 mobile home lots. The total project cost is $652,775, with the Georgia Department of Community Affairs providing $500,000 in a Community Development Block Grant (CBDG) and the city of Ringgold providing $123,439.32 in local funds.

City of Thomasville

The city of Thomasville was approved for a Drinking Water State Revolving Fund (DWSRF) loan of $2,250,000 to finance purchasing and replacing water meters and a GIS asset and work management system. The city of Thomasville will pay three percent interest on a 15-year loan for $2,250,000 the total amount of the project. As a green project, 50 percent of the principal drawn will be forgiven. The 2010 DWSRF program guidelines direct the states to reserve 20 percent of the DWSRF funding for projects that address water or energy efficiency improvements or other environmentally-innovative activities.

Cities and counties interested in more information regarding GEFA loans should visit www.gefa.org or call (404) 584-1000.

About the Georgia Environmental Finance Authority (www.gefa.org) 
The Georgia Environmental Finance Authority (GEFA) provides energy, land and water resources resulting in an improved quality of life for today and future generations. GEFA is the lead agency for state energy programs and is home to the Center of Innovation for Energy; directs the Georgia Land Conservation Program and maintains state-owned fuel storage tanks; and offers financing for reservoir and water supply, water quality, storm water and solid waste infrastructure. Since 1985, GEFA has approved financial commitments totaling more than $3 billion to local governments, businesses and nonprofit organizations. For more information, visit www.gefa.org.

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.

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GEFA Approves 22 Water, Sewer Infrastructure Projects Totaling $41 Million for Georgia Communities

Governor Sonny Perdue announced August 25the approval of 22 environmental infrastructure project loans totaling $41 million. Sixteen of the projects were either fully or partially financed by the American Recovery and Reinvestment Act (ARRA) at a total of $33.7 million. The GEFA board of directors approved the commitments to help finance water and sewer infrastructure projects in 22 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 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 Tuesday:

City of Allentown



The city of Allentown was approved for a Georgia Fund loan of $45,275 for improvements to the city’s water system. The city will pay a two percent interest rate on the 10-year loan. The total project cost is $90,550, with a grant of $45,275 from the Georgia Department of Community Affairs (DCA) providing the remainder.

BanksCounty

Financed through the ARRA, Banks County was approved for a Drinking Water State Revolving Fund (DWSRF) loan of $777,480 and a DWSRF subsidy of $1,814,120 for the construction of a new one million gallon clear well, pump station and associated water main. The total project cost is $2,591,600 with GEFA providing the entire amount. Consistent with GEFA’s ARRA financing terms for OneGeorgia-eligible communities, 70 percent (up to a maximum of $1,814,120) of the principal will be forgiven, subject to the loan contract provisions. Banks County will pay three percent interest on the loan portion, up to a maximum of $777,480, for 20 years.

City of Blakely

Financed through the ARRA, the city of Blakely was approved for a Clean Water State Revolving Fund (CWSRF) loan of $486,750 and a CWSRF subsidy of $1,135,750 for the replacement or repair of manholes and sewer mains. The total project cost is $1,622,500 with GEFA providing the entire amount. Consistent with GEFA’s ARRA financing terms for communities that are OneGeorgia-eligible, 70 percent (up to a maximum of $1,135,750) of the principal will be forgiven, subject to the loan contract provisions. The city of Blakely will pay three percent interest on the loan portion, up to a maximum of $486,750, for 15 years.

City of Calhoun

Financed through the ARRA, the city of Calhoun was approved for a green project through the Drinking Water State Revolving Fund (DWSRF). The loan of $600,000 and a DWSRF subsidy of $900,000 were approved for the upgrade of approximately 5,500 water meters to transmit information to a new automated meter reading system. The total project cost is $1,500,000 with GEFA providing the entire amount. Consistent with GEFA’s ARRA financing terms for green projects, 60 percent (up to a maximum of $900,000) of the principal will be forgiven, subject to the loan contract provisions. The city of Calhoun will pay three percent interest on the loan portion, up to a maximum of $600,000, for ten years.

Carroll County Water Authority

Financed through the ARRA, the Carroll County Water Authority was approved for a green project through the Drinking Water State Revolving Fund (DWSRF). The loan of $1,870,000 and a DWSRF subsidy of $2,805,000 were approved for the replacement of 17,000 water meters to transmit information to a new automated meter reading system. The total project cost is $4,675,000 with GEFA providing the entire amount. Consistent with GEFA’s ARRA financing terms for green projects, 60 percent (up to a maximum of $2,805,000) of the principal will be forgiven, subject to the loan contract provisions. The Carroll County Water Authority will pay three percent interest on the loan portion, up to a maximum of $1,870,000, for 20 years.

City of Clayton

Financed through the ARRA, the city of Clayton was approved for a green project through the Drinking Water State Revolving Fund (DWSRF). The loan of $237,320 and a DWSRF subsidy of $355,980 were approved for the replacement of 2,000 water meters and the upgrade of 1,000 water meters to transmit information to a new automated meter reading system. The total project cost is $593,300 with GEFA providing the entire amount. Consistent with GEFA’s ARRA financing terms for green projects, 60 percent (up to a maximum of $355,980) of the principal will be forgiven, subject to the loan contract provisions. The city of Clayton will pay three percent interest on the loan portion, up to a maximum of $237,320, for ten years.

City of Cumming

Financed through the ARRA, the city of Cumming was approved for a Drinking Water State Revolving Fund (DWSRF) loan of $711,884 and a DWSRF subsidy of $474,589 for modifications to the settling basins at the city’s Potable Water Production Facility. The total project cost is $1,186,473 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 $474,589) of the principal will be forgiven, subject to the loan contract provisions. The city of Cumming will pay three percent interest on the loan portion, up to a maximum of $711,884, for 20 years.

City of Demorest

The city of Demorest was approved for a Georgia Fund loan of $360,000 for improvements to the city’s water system. The city will pay a 3.81 percent interest rate on the 20-year loan. The total project cost is $660,000, with a $300,000 grant from the Appalachian Regional Commission providing the remainder.

Ellijay-GilmerCountyWater and Sewerage Authority

Financed through the ARRA, the Ellijay-Gilmer County Water and Sewerage Authority was approved for a Drinking Water State Revolving Fund (DWSRF) loan of $1,032,227 and a DWSRF subsidy of $2,408,531 for water infrastructure upgrades within the Coosawattee River Resort residential development. The total project cost is $3,440,758 with GEFA providing the entire amount. Consistent with GEFA’s ARRA financing terms for OneGeorgia-eligible communities, 70 percent (up to a maximum of $2,408,531) of the principal will be forgiven, subject to the loan contract provisions. The Ellijay-Gilmer County Water and Sewerage Authority will pay three percent interest on the loan portion, up to a maximum of $1,032,227, for 20 years.

Heard County Water Authority

Financed through the ARRA, the Heard County Water Authority was approved for a Clean Water State Revolving Fund (CWSRF) loan of $30,000 and a CWSRF subsidy of $70,000 for the replacement of the pumps and controls at a wastewater lift station. The total project cost is $100,000 with GEFA providing the entire amount. Consistent with GEFA’s ARRA financing terms for communities that are OneGeorgia-eligible, 70 percent (up to a maximum of $70,000) of the principal will be forgiven, subject to the loan contract provisions. The Heard County Water Authority will pay three percent interest on the loan portion, up to a maximum of $30,000, for five years.

City of Hiawassee

The city of Hiawassee was approved for a Georgia Fund loan of $400,000 for improvements to the city’s sewer system. The city will pay a 3.81 percent interest rate on the 20-year loan. The total project cost is $700,000, with a $300,000 grant from the Appalachian Regional Commission providing the remainder.

City of Lawrenceville

Financed through the ARRA, the city of Lawrenceville was approved for a Drinking Water State Revolving Fund (DWSRF) loan of $990,000 and a DWSRF subsidy of $660,000 for the extension and replacement of water mains. The total project cost is $1,650,000 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 $660,000) of the principal will be forgiven, subject to the loan contract provisions. The city of Lawrenceville will pay three percent interest on the loan portion, up to a maximum of $990,000, for 20 years.

City of Lula

Financed through the ARRA, the city of Lula was approved for a Clean Water State Revolving Fund (CWSRF) loan of $2,574,144 and a CWSRF subsidy of $6,006,336 for the construction of a wastewater treatment plant. The total project cost is $8,580,480 with GEFA providing the entire amount. Consistent with GEFA’s ARRA financing terms for communities that are OneGeorgia-eligible, 70 percent (up to a maximum of $6,006,336) of the principal will be forgiven, subject to the loan contract provisions. The city of Lula will pay three percent interest on the loan portion, up to a maximum of $2,574,144, for 20 years.

Nicholson Water Authority

The Nicholson Water Authority was approved for a Drinking Water State Revolving Fund (DWSRF) loan of $1,000,000 for the construction of a new well, the rehabilitation of an existing well and the replacement of water mains. The Authority will pay a three percent interest rate on the 20-year loan. The total project cost is $1,000,000 with GEFA providing the entire amount.

City of Rockmart

The city of Rockmart was approved for a Georgia Fund loan of $460,000 for improvements to the city’s water and sewer systems. The city will pay a 3.81 percent interest rate on the 20-year loan. The total project cost is $760,000, with a $300,000 grant from the Appalachian Regional Commission providing the remainder.

City of Savannah

The city of Savannah was approved for a Georgia Fund loan of $5,000,000 for improvements to the city’s sanitary sewer system. The city, a WaterFirst community, will pay a 2.81 percent interest rate on the 20-year loan, one percent lower than the current Georgia Fund rate. WaterFirst communities are certified by DCA as having met and maintained stringent standards for system management and water conservation. Participants are entitled to a lower interest rate on certain GEFA loans. GEFA will consider a phase two loan of $5,000,000 for the project next year.

City of Stockbridge

Financed through the ARRA, the city of Stockbridge was approved for a Drinking Water State Revolving Fund (DWSRF) loan of $2,499,900 and a DWSRF subsidy of $1,666,600 for the replacement of asbestos-cement water mains and the relocation of service connections. The total project cost is $4,166,500 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 $1,666,600) of the principal will be forgiven, subject to the loan contract provisions. The city of Stockbridge will pay three percent interest on the loan portion, up to a maximum of $2,499,900, for 20 years.

City of Summerville

Financed through the ARRA, the city of Summerville was approved for a green project through the Clean Water State Revolving Fund (CWSRF). The loan of $192,000 and a CWSRF subsidy of $288,000 for the construction of a pump station that transfers treated wastewater for reuse in carpet manufacturing. The total project cost is $480,000 with GEFA providing the entire amount. Consistent with GEFA’s ARRA financing terms for green projects, 60 percent (up to a maximum of $288,000) of the principal will be forgiven, subject to the loan contract provisions. The city of Summerville will pay three percent interest on the loan portion, up to a maximum of $192,000, for 20 years.

City of Suwanee

Financed through the ARRA, the city of Suwanee was approved for a Drinking Water State Revolving Fund (DWSRF) loan of $288,026 and a DWSRF subsidy of $192,018 for the construction of a new well and the replacement of water lines. The total project cost is $480,044 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 $192,018) of the principal will be forgiven, subject to the loan contract provisions. The city of Suwanee will pay three percent interest on the loan portion, up to a maximum of $288,026, for 15 years.

City of Tennille

Financed through the ARRA, the city of Tennille was approved for a green project through the Drinking Water State Revolving Fund (DWSRF). The loan of $100,000 and a DWSRF subsidy of $150,000 were approved for the replacement of approximately 780 aging water meters with electronic meters. The financing will also fund a system-wide leak detection study. The total project cost is $250,000 with GEFA providing the entire amount. Consistent with GEFA’s ARRA financing terms for green projects, 60 percent (up to a maximum of $150,000) 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 $100,000, for 10 years.

City of Tifton

Financed through the ARRA, the city of Tifton was approved for a green project through the Clean Water State Revolving Fund (CWSRF). The loan of $800,000 and a CWSRF subsidy of $1,200,000 were approved for the upgrade of wastewater treatment equipment with a system that reduces maintenance efforts and lowers operating costs. The total project cost is $2,000,000 with GEFA providing the entire amount. Consistent with GEFA’s ARRA financing terms for green projects, 60 percent (up to a maximum of $1,200,000) of the principal will be forgiven, subject to the loan contract provisions. The city of Tifton will pay three percent interest on the loan portion, up to a maximum of $800,000, for 20 years.

City of Villa Rica

Financed through the ARRA, the city of Villa Rica was approved for a Drinking Water State Revolving Fund (DWSRF) loan of $255,000 and a DWSRF subsidy of $170,000 for the installation of water mains. The total project cost is $425,000 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 $170,000) of the principal will be forgiven, subject to the loan contract provisions. The city of Villa Rica will pay three percent interest on the loan portion, up to a maximum of $255,000, for 15 years.

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Proposed Water Trust Fund Bill Would Provide Solid Foundation for Improvement

/PRNewswire/ -- As Americans, we owe our health and much of our quality of life to the improvements that have been made during the past century to the drinking water and wastewater systems on which we rely. Despite the importance of those systems to our daily lives and the nation's economy, our water infrastructure currently faces a five-year funding shortfall of more than $100 billion.

At a press conference this morning to announce Rep. Earl Blumenauer's plan to introduce legislation to create a Water Trust Fund (the Water Protection and Reinvestment Act), the American Society of Civil Engineers (ASCE) expressed strong support for the creation of a stable, long-term funding mechanism and commended Blumenauer for his support for the nation's infrastructure. The Society noted that such a commitment will be essential to the renewal of these vital national resources, but that provisions--such as making the program deficit-neutral and including budgetary firewalls to prevent the diversion of monies collected--must be included to ensure long-term, sustainable success.

In the Society's 2009 Report Card for America's Infrastructure, ASCE assigned both wastewater and drinking water systems a barely passing grade of D-. According to ASCE president D. Wayne Klotz, P.E., D.WRE, F.ASCE, "Every day we rely on seemingly invisible water and wastewater systems to support our quality of life and the nation's economy, and yet they suffer from inattention and underfunding. A long-term, dedicated funding source, like the one proposed by Congressman Blumenauer, will go a long way in ensuring that these vital systems can continue to support the health and safety of the American people."

Later in the afternoon, a representative from ASCE's Report Card for America's Infrastructure Advisory Council, Dale Jacobson, P.E., BCEE, F.ASCE will testify before the House Transportation and Infrastructure Committee's Subcommittee on Water Resources and Environment about the potential challenges facing the trust fund proposal, as well as the potential opportunities and benefits such a program could bring.

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Drinking Water Infrastructure Investment Could Create 400,000 Jobs

/PRNewswire-USNewswire/ -- The American Water Works Association (AWWA), the authoritative resource on safe water, is urging Congress to include funding for drinking water infrastructure projects in the stimulus legislation now being considered.

Today, more than $10 billion in drinking water infrastructure projects around the nation are shovel-ready and can be underway as soon as funds are committed. These projects would put more than 400,000 Americans to work on aging water mains, leaking pipes, treatment plants, pump stations, storage reservoirs, elevated tanks, security safeguards and other needs.

"As Congress again considers legislation to stimulate the economy, the nation's drinking water utilities stand ready to create immediate jobs and lasting economic benefits through investment in water infrastructure," said Tom Curtis, AWWA's Washington D.C.-based deputy executive director.

While other forms of economic stimulus such as taxpayer refunds or stimulus checks may provide a quick infusion of money into the economy, their effects can be short-lived. By comparison, infrastructure projects benefit the economy over a more sustained period of time by creating quality jobs across all tax brackets, creating demand for the services and products that businesses and industry bring to market, and by providing long-lasting benefits to society as a whole, such as health protection and fire protection.

Local water systems across the country deliver water for all our society's needs - from first responders to all aspects of our businesses and personal lives. But much of our water infrastructure was constructed between 80 and 100 years ago, and is nearing the end of its functional lifespan.

"Our water systems are critical to our public health and safety today and in the future, and there's no better way to put Americans to work," Curtis said.

A 2001 study by AWWA estimated the cost of replacing existing pipes over the next two decades will top $250 billion.

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Governor Announces GEFA Loans and Grants

Governor Sonny Perdue announced today the approval of three Georgia Fund commitments totaling $5,410,842, one Drinking Water State Revolving Fund (DWSRF) commitment of $2,933,874, and one water reuse grant of $300,000. The Georgia Environmental Facilities Authority (GEFA) Executive Committee approved the loans and grant to help finance water, sewer and solid waste infrastructure projects for Lamar County, the Middle Georgia Regional Solid Waste Authority, and the cities of Springfield, Woodstock and Hinesville.

“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, sewer, and solid waste 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, sewer, and solid waste 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.”

Clark expressed appreciation to Governor Perdue and the Georgia 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. 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 illustrate 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 is a federal loan program administered by GEFA for drinking water infrastructure projects.

Details of the loans and grants approved today are below:

Lamar County

Lamar County was approved for a DWSRF loan of $2,433,874 to help finance water system infrastructure improvements. The project will add new customers to the water system by eliminating approximately 176 private wells. Lamar County will pay zero percent interest on the 20-year loan along with a $500,000 subsidy. GEFA is financing the entire estimated cost of the $2,933,874 project.

City of Springfield

The city of Springfield was approved for a Georgia Fund loan of $1,380,842 to help finance improvements to the water system infrastructure. The city will pay 4.27 percent interest on the 20-year loan. The total project cost is $2,523,484 with the Effingham County Industrial Development Authority providing the remaining funds of $1,142,642.

City of Woodstock

The city of Woodstock was approved for a Georgia Fund loan of $3,500,000 to help finance repairs and replacement of sewer system infrastructure. The city will pay 4.27 percent interest on the 20-year loan. The total cost is $3,500,000 with GEFA providing the entire amount.

City of Hinesville

The city of Hinesville was approved for a water reuse grant of $300,000 to help finance construction of reuse water distribution lines to provide irrigation at county facilities, the Cherokee Rose Country Club and Fort Stewart.

Middle Georgia Regional Solid Waste Authority

The Middle Georgia Regional Solid Waste Authority was approved for a Georgia Fund loan of $530,000 to help finance the construction of two new cells at the authority’s landfill. The authority will pay 4.27 percent interest on the 20-year loan. The total cost is $530,000 with GEFA providing the entire amount.

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Mayor Franklin’s Testimony at the United States Senate Committee on Banking, Housing and Urban Affairs - Excerpts

GFP Note: Mayor Shirley Franklin was one of four mayors who testified before a Congressional Committee on June 12, 2008 on declining infrastructure and the financial impact. The entire testimony can be found at at this link.

Good Morning, Chairman Dodd, Ranking Member Shelby and Members of the Committee. I appreciate the opportunity to testify before the Committee on the condition of the infrastructure in the City of Atlanta. As I am sure you are aware, the infrastructure of most, if not all, American cities is in a declining state. We mayors are on the front lines, coping daily with frequent shortfalls in our aging infrastructure while we struggle to address the staggering costs of repairs, and more often than not are unable to even consider the expense of replacement of these critical systems.

When I took office as Mayor of the City of Atlanta in January 2002, it did not take long for me to realize that the City’s severely neglected infrastructure would require my immediate attention, particularly the rebuilding of our water and sewer infrastructure. We recently passed the halfway mark in our $4 billion Clean Water Atlanta Initiative, the details of which I will share with you momentarily.

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Mr. Chairman and Members of the Committee, Atlanta’s water and sewer system and transportation infrastructure system are the areas on which I will focus my testimony.
Water and Sewer Infrastructure.

Clean drinking water and wastewater are local, regional and national issues. Cities must continue to do their part to address the challenges facing our water and sewer infrastructure systems. However, we cannot do it alone. We need state support and support from Washington. We need a partner in the federal government. Let me tell you about what we’re doing in Atlanta.

Clean Water Atlanta Initiative

In the Fall of 2002, I announced the launch of the Clean Water Atlanta Program, a comprehensive long-term program involving a complete overhaul of the City’s water and sewer infrastructure. The program includes a $4 billion, court-ordered mandate to repair and replace the City’s water and sewer infrastructure, which will ensure that our residents and businesses have clean drinking water and that our downstream neighbors have safe water supplies.
As part of the Clean Water Program, we have drastically reduced sanitary and combined sewer overflows; separated the sewers, leaving only the downtown area with combined sewers; built more than 120 miles of new water mains; inspected more than 1,000 miles of sewers; and rehabbed about 250 miles of sewers. As a result of these efforts, one of our primary waterways – the Chattahoochee River – is cleaner than it was 10 years ago.

Although we have secured $500 million in low-interest state loans and approximately $6 million in grants from the EPA, we have undertaken this major project largely on the backs of the City’s residents, some 25 percent of whom live at or below the poverty line. Atlanta’s customers are already paying some of the country’s highest water and sewer rates. When you add the challenges associated with our drought to these infrastructure costs, the problem becomes even larger.

The condition of Atlanta’s water and sewer infrastructure has a profound effect not just on the City, but on the entire Metropolitan region. Atlanta is the economic engine of the State of Georgia and the City’s continuing prosperity has impacts well beyond its geographical boundaries throughout the entire Southeast. Atlanta cannot grow in an economically sound and sustainable way without reliable water and sewer systems. And if Atlanta’s growth stalls, Georgia and the Southeast will suffer.

National Scope of Water and Sewer Problems

Atlanta’s situation is not unique. Most American cities either are now or will soon be facing the problems Atlanta is facing. The American Society of Civil Engineers estimates that there is a $534 billion funding gap between what is available and what the needs are nationwide for water projects. The nation’s 54,000 drinking water systems face staggering public investment needs over the next 20 years. Although America spends billions on infrastructure each year, drinking water faces an annual shortfall of at least $11 billion to replace aging facilities that are near the end of their useful life and to comply with existing and future federal water regulations. The shortfall does not account for any growth in the demand for drinking water over the next 20 years.

The drinking water lost from leaking pipes can range from 5 to 40 percent in some cities, which is a tremendous cost in terms of water loss. This is occurring at a time when 35 percent of cities will face water shortages by 2025, according to the U.S. Conference of Mayors’ 2005 survey of cities.

According to a 2004 estimate, the Environmental Protection Agency says the nation’s sewers are in such woeful shape that we are discharging 850 billion gallons of combined sewer
overflows a year into our streams and rivers, and another 10 billion gallons of sanitary sewer overflows.

Local governments are the primary investor in water and wastewater infrastructure in the U.S. According to the U.S. Conference of Mayors, the local government share of spending on sewer infrastructure and services is more than 95 percent, with the state share being less than 5 percent. For water systems infrastructure and services, the local government share is more than 99 percent. The trend is for greater spending on water and sewer infrastructure and services due to a variety of factors including population growth and land use, an aging water infrastructure requiring ongoing maintenance and rehabilitation, and the impacts of climate change.

Attached to my statement is a chart compiled by the U.S. Conference of Mayors, which reflects these trends. As you will see, local governments shoulder a significant portion of these growing infrastructure costs, at the same time that Congressional funding for water infrastructure and services remains nearly the same as funding levels from 10 to 20 years ago.

Completely overhauling the country’s aging infrastructure cannot be a prospect left solely to the cities, many of which struggle daily to provide the services an aging population demands. The cities are not looking for a handout. But at some point the federal government has to make a commitment to the health of the nation’s cities, and that is going to require money. Cities need a direct partner in the federal government because the country’s prosperity depends on the health of its cities.

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