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Chattanooga, county sewer authority borrow $27 million for sewer upgrades

Water flows out of the sanitary sewer overflow manholes on South Kelly Street. WWTA's ongoing sewer evaluation will help reduce such overflows in Signal Mountain, Red Bank and other areas of Hamilton County.
Water flows out of the sanitary sewer overflow manholes on South Kelly Street. WWTA's ongoing sewer evaluation will help reduce such overflows in Signal Mountain, Red Bank and other areas of Hamilton County. Water flows out of the sanitary sewer overflow manholes on South Kelly Street. WWTA's ongoing sewer evaluation will help reduce such overflows in Signal Mountain, Red Bank and other areas of Hamilton County.

By Tim Omarzu, Mark Pace 4 min read

Chattanooga and the county sewer authority will borrow more low-interest loans from the state to pay for upgrades to local sewage systems needed to open up areas for more development and comply with water quality regulations.

The city applied for an $18.1 million loan for three projects that will improve its solid treatment process and add sewer storage tanks across from the proposed visitor center to the Moccasin Bend Archaeological District.

Meanwhile, the Hamilton County Water and Wastewater Treatment Authority (WWTA) plans to borrow close to $9 million to fix up its sprawling sewage system – primarily near Exit 1 in East Ridge, which is the site of a new Bass Pro Shops-anchored shopping center that’s been hamstrung by a sewer moratorium that’s limited commercial development there.

While both the city and WWTA could borrow on their own, Tennessee’s Clean Water State Revolving Fund Loan, administered by the state Department of Environment and Conservation through the U.S. Environmental Protection Agency, has an interest rate of only 1.45 percent and forgives the first $100,000 of the loan, officials said Tuesday.

“It makes very good financial sense for the city to take out these types of loans to fund their capital improvement program,” Program Manager Michael Marino said, explaining why the city went with the loan over bonds.