Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the Clean Water Loans topic
No spam. Unsubscribe anytime.
TLDA approves two Clean Water SRF loans for Brownsville, Parsons with principal forgiveness
Summary
The Tennessee Local Development Authority approved two Clean Water State Revolving Fund loans — $17 million to Brownsville Energy Authority and $1,606,835 to the City of Parsons — both 20-year loans at 1.32% interest. Both disadvantaged communities received principal forgiveness for half or a portion of their loans.
The Tennessee Local Development Authority on June 23 approved two Clean Water State Revolving Fund (SRF) loans: a $17,000,000 loan to Brownsville Energy Authority for a new wastewater treatment plant and a $1,606,835 construction loan to the City of Parsons to relocate sewer lines.
TLDA staff member Miss Jones told the board the Brownsville loan carries a 20-year term at a 1.32% interest rate and is eligible for $4,999,700 in principal forgiveness, reducing Brownsville’s repayable principal to $12,000,300. Jones said Brownsville was on the 2023 project priority list and “SRF recommends approval of this loan request.”
Jones described the Parsons loan as a 20-year construction loan at 1.32% interest with $803,417.50 in principal forgiveness; the remaining $803,417.50 would be repaid. Jones said Parsons was on the 2022 project priority list and that the city had provided required documents, including an annual budget and timely audit. Jones also reported the SRF program balance at $245,327,242 before the two requests and said the two requests would decrease the balance by $18,606,835 if approved.
The board voted on a motion to approve both loans together. Miss Scott, Secretary Hargett, Comptroller Mumpower, Treasurer Lillard, Mayor Brown and Mayor Bradshaw voted in favor; the chair recorded the items as approved.
Both loans include security and documentation conditions described by staff: Brownsville pledged a security deposit equal to one year’s maximum annual debt service ($683,028), and Parsons pledged state-shared taxes and reported prior obligations. Jones also noted a typographical error in Brownsville’s financial section listing operating revenue as $4,193,800.
The SRF staff indicated the clean water emerging contaminant fund has $1,358,000 remaining; no loans from that fund had been requested at the meeting.
The TLDA’s action authorizes SRF staff to proceed with loan closings consistent with the terms presented and with the security, documentation and conditions recorded in the meeting packet. The board did not request further follow-up on these two items.
