Wednesday, June 26, 2013

Amanas, Oxford, Tiffin net interest savings on SRF loans

The Iowa Finance Authority and the Iowa Department of Natural Resources recently announced that three area communities are among the 114 statewide with current State Revolving Fund loans for water quality initiatives will be saving a total of $6.5 million in interest over the life of the loans as a result of the program?s interest rate being reduced from 3 percent to 1.75 percent as of June 1.

The local projects are

? Oxford: $11,000.

? Tiffin: $9,137.

? West Amana/High Amana Sanitary District: $27,750.

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 worth more than $2 billion to more than 500 Iowa communities as well as to farmers, watershed groups and others for water quality projects. The program is operated jointly through the Iowa Finance Authority and the Iowa Department of Natural Resources.

The State Revolving Fund recently reduced its interest rate on all new 20-year State Revolving Fund loans to 1.75 percent. Due to success of the program, the rate reduction is being extended to all existing loans that are at least 10 years old.

?The Iowa Finance Authority is proud to offer these 114 Iowa communities this significant interest savings, which we?re able to offer due to the recent growth of the program and careful financial management,? said Iowa Finance Authority Executive Director Dave Jamison. ?More than 500 communities have already benefited from the State Revolving Fund?s low-cost financing to upgrade drinking water and wastewater facilities and we?re positioned to assist many more.?

?Iowa?s State Revolving Fund is a win-win for Iowans and Iowa communities of all sizes,? said Iowa Department of Natural Resources Director Chuck Gipp. ?The program offers low-interest loans to help communities affordably build or update water facilities, resulting in lower water and sewer bills for Iowans.?

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BACKGROUND

Besides offering the lowest interest rate to finance water infrastructure projects, the SRF offers other benefits to Iowa communities. Borrowing through the SRF means communities incur lower up-front costs and aren?t required to have a reserve. For more information on the State Revolving Loan program, visit?IowaSRF.com.

The Iowa Legislature created The Iowa Finance Authority, the state?s housing finance agency, in 1975 to undertake programs to assist in the attainment of housing for low- and moderate-income Iowans. IFA also administers the State Revolving Fund (SRF) in partnership with the Iowa Department of Natural Resources. The SRF assists communities with the costs of upgrading or constructing public wastewater and drinking water infrastructure projects.

Source: http://yourweeklypaper.com/blog/2013/06/26/amanas-oxford-tiffin-net-interest-savings-on-srf-loans/

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