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TLDA approves $4.4 million drinking-water loan for Cedar Grove Utility District
Summary
The Tennessee Local Development Authority approved a $4.4 million State Revolving Fund loan to Cedar Grove Utility District for replacement of asbestos water main; the district qualified for 50% loan forgiveness, making the repayable principal $2.2 million over 20 years at 1.97% interest.
The Tennessee Local Development Authority on July 21 approved a $4.4 million drinking-water loan to Cedar Grove Utility District in Carroll County to replace aging asbestos water mains.
Vena Jones, a TLDA staff member, told the authority the district requested $4,400,000 to replace about 83,000 linear feet of asbestos pipe and that SRF staff had determined the utility qualifies as a small or disadvantaged community. "They are eligible for 50% loan forgiveness making the debt request $2,200,000 of repayable principal over 20 years with a 1.97% interest rate," Jones said.
The loan was presented as part of a brief review of program balances. Jones reported an SRF unobligated balance of $59,064,109 and said the authority also has $5,490,347 in an emerging contaminants account and $118,097,948 in the lead service line loan fund. Jones said Cedar Grove had provided the required technical, administrative and financial documentation and had pledged a security deposit equal to one year—s annual debt service of $133,392.
A board member moved to approve the loan and another member seconded; the authority approved the request by voice vote. The minutes record a voice approval rather than a roll-call tally.
Why it matters: The SRF program provides low-cost financing for water infrastructure; the combination of principal forgiveness and low interest is intended to reduce the rate impact on small, disadvantaged utilities. The authority—s packet showed the application and supporting materials were submitted for board review.
What was not specified: The transcript included a reference to the utility—s annual revenue and customer count, but the numbers were not clear in the record. The authority—s staff memo in the meeting packet is the cited source for the loan-eligibility determination and the forgiveness amount.
Looking ahead: The authority approved the loan request at the meeting; staff will proceed with the loan-closing steps documented in the loan package.
