A reduction in interest rate will save 30 municipalities more than $7.6 million, according to the Iowa Finance Authority and the Iowa Department of Natural Resources.
Municipalities with State Revolving Fund loans are being reduced from 3% to 1.75%. The State Revolving Fund is one of Iowa’s major sources for financing projects aimed at improving Iowa’s water quality.
“We’ve found the State Revolving Fund to be the most affordable option for completing our water quality projects and keeping rates low for our residents,” City of Washington Finance Director Kelsey Brown said in a release from the Iowa Finance Authority.
A fund for drinking water and another for wastewater and pollution control have provided low-cost financing to projects in nearly 700 Iowa communities in addition 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.
“This program is a successful partnership between state and local governments, and we are proud to play a role in not only assisting communities in completing water quality projects, but also helping them realize substantial savings,” Iowa Department of Natural Resources Director Kayla Lyon said in the release.
