Two loans totaling almost $6 million will help fund ongoing wastewater infrastructure projects in Cleveland, Tennessee, according to an announcement by Gov. Bill Lee and the commissioner over the state agency that oversees the loan program.
Cleveland Utilities' loans are among four approved by the Tennessee Local Development Authority totaling $16.5 million, also including loans for the city of Lakeland and the Brownsville Energy Authority, state officials said in a news release.
One of the loans is $3.1 million from the Clean Water State Revolving Fund Loan Program for wastewater treatment plant improvements, according to officials. The utility will also borrow $2.7 million from the program for wastewater collection system expansion. Both loans have 20-year terms at 2.4% interest.
(READ MORE: Cleveland gets $10.8 million loan to fund more sewer improvements)
The two loans help support ongoing improvement projects, said Jon Sparkman, the utility's engineering manager for the water and wastewater divisions.
"These are both companion loans to existing loans that we already have for these projects," Sparkman said in a phone interview.
The loans will along move the long-term projects, Sparkman said.
He said the $3.1 million loan is to help finance an ultraviolet disinfection project at the Hiwassee River Wastewater Treatment Plant, to treat water before discharge into the Hiwassee River.
"The $2.7 million is a companion loan that's going to support what we call the Durkee Road Area Sewer Collection system improvements," he continued. "Those improvements are necessitated by prior annexation where we're trying to get sewer to unserved areas within the city limits."
The loan program is important for all of Tennessee's communities, Lee said.
"This program provides important assistance in addressing water infrastructure needs in communities across the state," Lee said. "We look forward to the results of this process and commend the local officials for their commitment to serving our citizens."
(READ MORE: South Pittsburg gets $3.45 million in loans for water infrastructure improvements)
David Salyers, commissioner of the Tennessee Department of Environment and Conservation, said the program's loans have a long track record of helping Tennessee communities.
"We are pleased these loans have been approved," Salyers said. "It is an important way to meet community needs in our state."
Contact Ben Benton at bbenton@timesfreepress.com or 423-757-6569.
Staff Photo / An employee at the Cleveland Utilities' wastewater treatment plant in Charleston, Tennessee, performs fluoride tests on water collected. Cleveland Utilities got two loans recently totaling almost $6 million for water infrastructure improvements.