$25 Million in Infrastructure Loans Approved for Six Communities

May 17, 2012

The Georgia Environmental Finance Authority (GEFA) recently announced the approval of $25,127,488 in financing for environmental infrastructure projects in six Georgia communities. The GEFA board of directors approved the commitments to help finance water infrastructure improvements for the cities of Butler, Hampton, McDonough, Thomasville and Wadley and Twiggs County.
 
"The water, sewer and solid waste programs administered by GEFA assist local governments with improving their environmental infrastructure," said (GEFA) Executive Director Kevin Clark. "Financing water, sewer and solid waste projects encourages economic growth and the stewardship of our environment."
 
"GEFA financing for water, sewer and solid waste infrastructure helps communities in all areas of the state," said Grady Thompson, chairman of the GEFA board of directors and chairman of the Tift 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."
 
Below are details of the loans approved:

Butler
The city of Butler was approved for two loans that finance water and sewer system improvements. A Drinking Water State Revolving Fund (DWSRF) loan of $488,000 will finance the replacement of 1,220 water meters and water service lines. Butler will pay 1.13 percent interest on the 20-year loan of $488,000, which includes principal forgiveness of up to $146,400 if all loan funds are drawn. The loan also qualifies for a reduced interest rate because some portions of the project will conserve water. Butler was also approved for a Georgia Fund loan of $225,000 to finance rehabilitating 3,300 linear feet of gravity sewer lines. The city will pay 3.13 percent interest on the 20-year loan of $225,000.

Hampton
The city of Hampton was approved for a Clean Water State Revolving Fund (CWSRF) loan of $885,688 to finance constructing a 12-inch wastewater force main connecting the Thompson Creek wastewater pump station to Hampton’s wastewater treatment plant. Hampton will pay 2.13 percent interest on the 20-year loan of $885,688.

McDonough
The city of McDonough was approved for a Clean Water State Revolving Fund (CWSRF) loan of $1,000,000 to finance rehabilitating 17,460 feet of gravity sewer lines and 50 manholes. McDonough will pay 2.13 percent interest on the 20-year loan of $1,000,000.

Thomasville
The city of Thomasville was approved for two loans that finance water and sewer system improvements. A Clean Water State Revolving Fund (CWSRF) loan of $11,391,000 will finance the replacement of sewer lines, manholes and aging lift stations, as well as improvements to the wastewater treatment facility. Thomasville will pay 2.13 percent interest on the 20-year loan of $11,391,000, which includes principal forgiveness of up to $500,000 if all loan funds are drawn. The city was also approved for a Drinking Water State Revolving Fund (DWSRF) loan of $9,800,000 to finance a new well and chemical feed building, replacement water lines, a 500,000-gallon elevated water tank, and security and system monitoring improvements. Thomasville will pay 2.13 percent interest on the 20-year loan of $9,800,000, which includes principal forgiveness of up to $500,000 if all loan funds are drawn.

Wadley
The city of Wadley was approved for a Georgia Fund loan of $117,000 to finance wastewater treatment disinfection equipment. Wadley will pay 3.13 percent interest on the 10-year loan of $117,000.

Twiggs County
Twiggs County was approved for a Georgia Fund loan of $759,333 to finance a new influent storage tank, treated effluent storage tanks, and a dedicated land application system. The county will pay 2.63 percent interest on the 20-year loan of $759,333. Twiggs County is a Community of Opportunity and is eligible for a reduction in the Georgia Fund interest rate. Communities that qualify for this designation from the Department of Community Affairs (DCA) may receive up to .5 percent in reduced interest rate up to a cumulative maximum loan amount of $10,000,000. The total project cost is $1,220,800 with the U.S. Department of Commerce Economic Development Administration (USDC/EDA) providing a grant of $461,467, for which GEFA will provide temporary financing until the completion of the project.