JEFFERSON CITY, MO, APRIL 26, 2022 - The Missouri Department of Natural Resources has awarded a $387,000 loan to the city of Paris to help with planning and design of the city’s ongoing drinking water improvement project.
These funds will provide vital interim financing to cover early engineering and administrative costs while the city works to secure a larger loan and grant funding package from the department for its drinking water project. The larger construction project is expected to cost $3.4 million, and construction is estimated to start by 2023.
The early planning phases of infrastructure projects often represent a significant financial burden for cash-limited communities with water and wastewater needs. The planning and design loan program’s goal is to provide a cost-effective alternative to expensive private financing that allows communities to develop and deliver vital infrastructure projects for their citizens. These loans bear no interest and come with a five-year term. The funding assistance is estimated to save the city’s ratepayers approximately $34,000 in interest over the loan’s five-year term.
“The Drinking Water State Revolving Fund helps Missouri communities of all sizes pay for wastewater treatment system improvements that they might not have been able to undertake otherwise,” said Dru Buntin, director of the Missouri Department of Natural Resources. “We are here to help Missouri communities plan and fund infrastructure improvements that will help protect public and environmental health and provide local economic benefits as well.”
The department’s Drinking Water State Revolving Fund finances improvements to water treatment plants, distribution systems, water storage and supply facilities, along with interconnection or consolidation projects. Communities that borrow from the fund benefit from the below-market interest rate and from assistance provided throughout their project from a project manager.
The department’s Financial Assistance Center is committed to working with communities to assist with water and wastewater infrastructure improvement projects. This project will be funded wholly or in part with monies received from the U. S. Environmental Protection Agency.
For more information on wastewater and drinking water funding opportunities, visit dnr.mo.gov/water/business-industry-other-entities/financial-opportunities/financial-assistance-center.