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TLDA defers Columbia $75M SRF loan after debate over timing and regional plan
Summary
After hours of testimony and questioning about capacity, debt and regional options, the Tennessee Local Development Authority voted June 22 to defer consideration of a $75 million SRF loan for Columbia Power and Water until its next regular meeting to allow more review and to await the Duck River partnership's study.
The Tennessee Local Development Authority on June 22 voted to defer consideration of a $75 million State Revolving Fund (SRF) loan request from Columbia Power and Water System (CPWS) after an extended discussion about timing, regionalization and project cost.
Comptroller Mumpower moved to postpone action on item 4 (the SRF loan) and item 5 (a related WIFIA proposal) until the board's next regular meeting in late July; Treasurer Lillard seconded the motion and the board approved it by roll call. The motion followed public comment from Mayor Sheila Butt of Murray County and detailed presentations from SRF staff and Columbia officials.
Why it mattered: CPWS requested $75 million now (with a companion $60 million possible later) as part of a larger project with a total cost of $205 million to expand its drinking-water treatment plant by 12 million gallons per day. SRF staff told the board they evaluated the SRF and prospective WIFIA financing together and found Columbia financially sufficient for the proposed debt package. Ms. Jones told the board CPWS serves 25,333 customers and that the SRF recommendation called for a 30-year term at 3.06% for the $75 million agreement.
What supporters said: Mayor Chaz Molder of Columbia urged approval, arguing the project is "shovel ready," delaying would increase costs and risk, and that financing now could save the community "$50 million" in long-term interest. Matt Wheeler, vice president of water at CPWS, said the plant's useful life of assets could be well beyond the loan term and estimated the added capacity would meet projected growth for roughly 35 years.
What opponents and cautious members said: Murray County Mayor Sheila Butt urged delay, arguing the Duck River Water Planning Partnership is completing regional feasibility studies and that approving the loan now could preempt longer-term, collaborative solutions. TDEC representatives told the board that CPWS routinely operates near permitted capacity (TDEC indicated roughly 93% of plant capacity on peak days), a condition they described as risky if expansion is postponed. Treasurer Lillard and other members said new materials received shortly before the meeting and the pending partnership report justified taking more time.
Board action and next steps: The board voted to defer items 4 and 5 until the next regular meeting; members asked the Duck River Water Planning Partnership to consider whether a draft or expedited timeline could be made available to inform that deliberation. The deferral leaves the SRF recommendation in place but pauses formal approval pending further review.
The board also heard that CPWS seeks a companion SRF drawdown and additional WIFIA financing as part of a multi-source debt package. The Duck River task force's final recommendations were expected in the fall (board members referenced a September/October timeframe), and several members urged outreach among local officials in the intervening month.
The TLDA will revisit the Columbia requests at its next regular meeting.
