Clifton secures $15.9 million loan for new drinking water treatment plant

In a recent meeting of the Tennessee Local Development Authority (TLDA), significant discussions centered around a substantial loan request from the city of Clifton aimed at enhancing its drinking water infrastructure. The city is seeking a total loan of $15,900,000, which will be divided between two drinking water funds. This includes a primary loan of $10,715,809, which consists of both principal forgiveness and repayment components.

The funding is crucial for Clifton, particularly as it addresses emerging contaminants like PFAS through a new treatment plant. The city is eligible for 100% loan forgiveness from the emerging contaminants fund, amounting to $5,188,000, which will significantly alleviate the financial burden associated with the treatment costs. Following this funding, the remaining balance in the emerging contaminants fund will be $5,490,347.

Additionally, the meeting highlighted the availability of a lead service line replacement fund, which currently stands at $118,097,948. This fund is intended to support communities in replacing outdated lead service lines, with several entities already expressing interest in securing loans for this purpose.

Clifton's loan request for a new drinking water treatment plant totals $824,903,000, with an overall project cost of $20,778,800. As a disadvantaged community, Clifton qualifies for substantial loan forgiveness, including nearly $5 million from the standard loan forgiveness program. The State Revolving Fund (SRF) has determined that Clifton is financially capable of supporting this loan without requiring additional revenue, as the city has demonstrated fiscal responsibility through timely audits and an approved budget.

The TLDA unanimously approved the loan request, reflecting a commitment to improving water quality and infrastructure in Tennessee's communities. This decision not only supports Clifton's immediate needs but also sets a precedent for future funding opportunities aimed at enhancing public health and safety through improved drinking water systems.