City gets $1M wastewater loan

Shelbyville has received a $1 million increase to an existing 20-year wastewater construction loan for the building of two new pump stations, the construction of interceptor sewers and a new force main.

Shelbyville was one of five cities and utility districts that will receive low-interest loans through the State Revolving Fund (SRF) Loan Program to fund water and wastewater construction projects, according to Tennessee Department of Environment and Conservation (TDEC) Commissioner Betsy L. Child.

David Crowell, general manager of Shelbyville Power, Water and Sewer, said the original request for the loan was made two years ago and the land acquisition had taken longer than anticipated.

Also, the engineering estimate was made two to three years ago and since that time, the cost had gone up $1 million above the original estimate. Material and labor cost rose as well during that time frame.

Crowell called the effort "a vital project," which will take stress off of Shelbyville's downtown sewer system and reroute the flow to the northwest.

The pump stations will be at Little Hurricane Creek and U.S. 231. Other communities receiving the loans were Mount Pleasant, Wartburg, the Hallsdale-Powell Utility District and McMinnville. The loan is at an interest rate of 1.7 percent.

The SRF Loan program provides low-interest loans to help communities, utility districts and water authorities finance water and wastewater projects which protect the state's ground and surface waters. The loans are used to finance planning, design and construction of water and wastewater facilities.

Communities, utility districts and water authorities can obtain loans with lower interest rates than most can obtain through private financing. Interest rates for the loans can vary from zero percent to market rate, based on each community's economic index.

The funding order of projects is determined by the SRF Loan Program's project priority lists, ranking potential projects according to the severity of their pollution problems, compliance or protection of public health.

TDEC administers SRF programs in conjunction with the Tennessee Local Development Authority. Through 2004, the U.S. Environmental Protection Agency provided "seed" money for the loan programs and the state provided matching funds.