Clifton City Council approves $15.9M loan for new drinking water treatment plant

The Tennessee Local Development Authority (TLDA) has approved a significant loan request from the city of Clifton to enhance its drinking water infrastructure. During the meeting on April 10, 2025, the TLDA greenlit a total loan of $15.9 million, which will be allocated from two drinking water funds to support the construction of a new treatment plant.

The city will receive $10,715,809 from the standard drinking water fund, which includes both principal forgiveness and repayment components. Additionally, Clifton is eligible for $5,188,000 in loan forgiveness from the emerging contaminants fund, as the city is actively addressing PFAS contamination through its new treatment facility. This funding will reduce the remaining balance in the emerging contaminants fund to $5,490,347.

The TLDA also reported a robust balance of $118,097,948 in the lead service line replacement fund, indicating ongoing interest from various entities in securing loans for lead line replacements. The approval of Clifton's loan is particularly noteworthy as the city is classified as a disadvantaged community, allowing it to benefit from principal forgiveness options.

Clifton has demonstrated financial sufficiency to support the loan, having completed necessary steps such as public meetings and timely audits. The TLDA's endorsement of this loan is expected to significantly improve the city's drinking water quality and infrastructure, benefiting residents and ensuring compliance with health standards.

The meeting concluded with unanimous support for the loan approval, marking a crucial step forward for Clifton's water treatment initiatives. This decision underscores the state's commitment to enhancing public health and safety through improved water infrastructure.