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TLDA approves $15.9 million drinking-water loan for Clifton, including PFAS treatment forgiveness
Summary
The Tennessee Local Development Authority approved a $15.9 million state revolving fund loan to the city of Clifton to finance a new drinking water treatment plant, including a forgivable component to cover PFAS treatment costs.
The Tennessee Local Development Authority on April 10 approved a $15.9 million drinking-water revolving fund loan to the city of Clifton to help build a new drinking water treatment plant, including a forgivable component to cover PFAS treatment costs.
TLDA staff told the board the drinking water program’s unobligated balance as of April 10, 2025, was $69,779,918 and that Clifton is seeking a total loan of $15,900,000. “Our unobligated balance for the drinking water program as of, 04/10/2025 is $69,779,918,” TLDA staff member Miss Jones told the board during the meeting. Staff said the borrowing is split between the standard drinking-water fund and the emerging contaminants fund.
Under the recommended package, Clifton would receive a standard loan amounting to $10,715,809 that is allocated between principal forgiveness and a repayable portion, and $5,188,000 from the emerging contaminants fund that staff characterized as eligible for 100% loan forgiveness because it covers PFAS treatment. Miss Jones said the total project cost is $20,778,800. The board record shows Clifton qualified as a disadvantaged community and that staff found the municipality financially sufficient based on current rates and revenues.
Board materials provided to members and summarized by staff included documentation that Clifton held a public meeting, submitted required audits and an approved annual budget, adopted a resolution to take on the debt, and provided a report on existing obligations. Miss Jones said the municipality also pledged tax revenues as security for the loan.
During the roll call, Commissioner Bryson recorded a vote of no; the loan was approved by the remaining voting members. The TLDA chair announced the item approved after the vote.
The drinking-water program also has a separate lead service line replacement fund with a remaining balance of $118,097,948, Miss Jones said. Staff noted entities have expressed interest in that program but no specific lead-line loans were before the board at this meeting.
The board’s approval authorizes program staff to execute the loan under the terms described in the packet and to adjust remaining fund balances accordingly.
