Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the Water Infrastructure topic
No spam. Unsubscribe anytime.
TLDA approves $15.725M SRF loan to Brownsville Energy Authority for wastewater plant
Summary
The Tennessee Local Development Authority on April 20 approved a $15.725 million companion SRF loan to Brownsville Energy Authority to complete a new wastewater treatment plant, part of a $32.725 million project; board members pressed staff about total project debt and asset life.
The Tennessee Local Development Authority approved a $15,725,000 State Revolving Fund loan to the Brownsville Energy Authority on April 20 to complete construction of a new wastewater treatment plant, SRF staff told the board.
Miss Jones, SRF staff, said the loan is a companion to an earlier $17 million SRF loan and that together the two loans would cover the project's total cost of $32,725,000. SRF recommended a 20-year term at 1.34% interest for the $15.725 million request. Miss Jones also reported the SRF clean-water unobligated balance at roughly $330.3 million before the action.
The board's Comptroller, Comptroller Monpower, asked whether the $15.725 million was the entirety of project financing or an incremental companion loan; Miss Jones confirmed it was a companion loan to the earlier $17 million award and said SRF evaluates repayment capacity based on existing debt and established revenue but cannot reliably account for debt that has not yet been issued. "We do take into account all of the debt and debt service that they have at the time," she said.
Monpower also pressed for the project's expected service life. Miss Jones and other members said the treatment plant should have a useful life longer than meter equipment, and one board member summarized that the plant would reasonably serve the community for at least 20 years. Miss Jones noted SRF can provide longer terms for disadvantaged communities under EPA expectations; the SRF program can offer up to 40-year terms in limited circumstances.
After discussion, the board moved and approved the loan by roll-call vote. Miss Carr recorded unanimous approval by the members present.
The TLDA did not specify additional conditions or amendments in the public discussion; SRF staff said Brownsville previously received loan forgiveness for the project and will provide customary security and documentation required under the SRF loan package. The board adjourned after approving other drinking-water loans later in the meeting.
