Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the Clean Water Loans topic
No spam. Unsubscribe anytime.
TLDA approves $3.69 million in Clean Water loans for Munford and Carthage
Summary
At its Feb. 13 meeting, the Tennessee Local Development Authority approved two Clean Water State Revolving Fund loans: $994,097 to Munford for wastewater pump replacement and $2.7 million to Carthage for sewer rehabilitation, including $540,000 in principal forgiveness.
The Tennessee Local Development Authority approved two Clean Water State Revolving Fund loans totaling $3,694,097 at its Feb. 13, 2025 meeting.
Paula Mitchell, deputy director for the Division of Water Resources, told the authority the Clean Water SRF unobligated balance as of Dec. 16, 2024, was $249,119,358 and that approving the two loans would reduce the available balance to $245,425,261.
Mitchell presented the first loan request for the city of Munford: a $994,097, 20-year loan to fund wastewater treatment plant improvements, primarily replacing existing influent pumps with above-ground suction lift pumps. Munford’s ability-to-pay index was listed at 60, qualifying the city for a tier 3 interest-rate reduction calculated at 2.63%. The project cost is $994,097 and would be funded entirely as loan principal. Munford was ranked 6th out of 53 projects on the 2021 priority ranking list. Mitchell reported the city’s operating revenues at $3,006,995, a current user rate of $40.02 per 5,000 gallons, and a customer base of 2,360. She said the financial sufficiency review found no additional rate increase was needed and that the borrower pledged unobligated state-shared taxes in an amount equal to the loan’s annual debt service.
The second recommended loan was for the town of Carthage: a $2,700,000, 20-year SRF loan for inflow and infiltration correction, including rehabilitation of approximately 20,000 linear feet of sewer lines by cured-in-place pipe lining and associated manhole work. Carthage’s ability-to-pay index was 50, making it eligible for the same 2.63% tier 3 interest-rate reduction. TDEC recommended this be structured as an 80% loan with 20% principal forgiveness — $540,000 would be forgiven and not repaid to the revolving fund. Carthage ranked 25th out of 56 projects on the 2023 priority list, has annual operating revenues of $1,811,664, a current user rate of $42.29 per 5,000 gallons, and 975 customers. Mitchell said the town filed its audit on Dec. 6 and that its staged rate increases are sufficient to repay the recommended loan; the town also pledged unobligated state-shared taxes equal to annual debt service.
After Mitchell’s presentation, the authority chair moved to approve both recommended loans; the motion was seconded and approved on an oral vote. The meeting record shows no names associated with the motion or the second.
Votes at a glance: both Clean Water SRF loans were approved by the authority on Feb. 13, 2025.
The authority moved on to other agenda items after the vote.
