These funds will provide vital interim financing to cover early engineering and administrative costs while the city works with the department to secure a larger funding package for the drinking water project. The city expects the entire project to total $1.2 million, with construction starting in 2028.
The early planning phases of infrastructure projects often represent a significant financial burden for cash-limited communities with water and wastewater needs. The department’s goal for the planning and design loan program 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 planning and design loans bear no interest and come with a five-year term. The department estimates its funding will save the city’s ratepayers approximately $33,000 in interest over the loan’s five-year term.
The department’s Drinking Water State Revolving Fund finances improvements to water treatment plants, distribution systems and water storage and supply facilities. The fund also finances system interconnection and consolidation projects. Communities that borrow from the fund benefit from the below-market interest rate and from assistance a project manager provides throughout the project.
The department is committed to assisting Missouri communities with water and wastewater infrastructure improvement projects. Through its Financial Assistance Center, the department provides funding opportunities for qualified communities with water quality, wastewater and drinking water infrastructure needs. This project will be funded wholly or in part with monies received from the U.S. Environmental Protection Agency.
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