Governor Rounds Recommends $53 Million Bond Issue for Water Projects
Governor Rounds Recommends $53 Million Bond Issue for Water Projects
At the urging of Governor Mike Rounds, the state Board of Water and Natural Resources, acting as the South Dakota Conservancy District, will consider a $53 million bond issue when it meets September 22 and 23 in Pierre.
The proposal is to sell $53 million in tax exempt revenue bonds to provide funds to loan through the existing Clean Water State Revolving Fund and Drinking Water State Revolving Fund. The revolving funds provide low interest loans to municipalities, special purpose water districts, and rural water systems to upgrade or expand drinking water, wastewater, and storm sewer systems.
A portion of the revenue bonds will be used to match federal funds provided by Congress and the U.S. Environmental Protection Agency (EPA) for the two state revolving loan funds. The remainder of the revenue bonds will be used to further capitalize the revolving funds to meet the high demand for water project loans.
"Low interest loans from the state revolving funds have been very valuable to our local communities in meeting their water needs," said Gov. Mike Rounds. "By completing this bond issue, we can keep that source of capital available for them to meet current water needs and provide for future economic growth as per the 2010 Initiative."
Low interest loans are awarded by the Board of Water and Natural Resources to projects that apply through the state water planning process, and the Department of Environment and Natural Resources (DENR) provides staff administration of the loans. Both loan programs are highly rated, as the 2004 bond issue for $38 million was rated AAA by Standard and Poor's and Aaa by Moody's. These are the highest bond ratings assigned by each rating agency.
Of the proposed $53 million, approximately $35 million will be for the Clean Water State Revolving Fund and $18 million for the Drinking Water State Revolving Fund.
Among the larger loans made through the Drinking Water and Clean Water State Revolving Funds within the past year are:
* $34.1 million to Sioux Falls for the new Eastside sanitary sewer project and water quality improvement projects upstream along the Big Sioux River,
* $8 million to the West River/Lyman-Jones Rural Water System to extend its main pipeline from Fort Pierre to 4 miles west of Hayes,
* $13.2 million to Aberdeen to upgrade and expand the city's wastewater treatment plant and cost share nonpoint source pollution controls upstream in the Elm River watershed,
* $5.4 million to the Kingbrook Rural Water System for expansion of its water distribution system,
* $3.6 million to the Clay Rural Water System for expansion into southern Union County,
* $1.7 million to the Brookings-Deuel Rural Water System for expansion in the White service area and to hook up Astoria residents as individual users, and,
* $24.7 million to Sioux Falls to upgrade the city's storm sewer system to handle larger rainfall events.
The first loan through the Clean Water State Revolving Fund was made in 1989. Through August, 167 loans totaling $212,939,129 have been made to 76 entities through the program.
The first Drinking Water State Revolving Fund loan was made in 1998. Through August, 88 loans totaling $145,718,659 have been made to 65 entities through the program.
Lists of projects funded through the two loan programs through September 2004 are provided in the latest annual reports which can be viewed by visiting www.state.sd.us/denr/DFTA/WWFunding/CWSRF/04CWSRFAnnualReport.pdf for Clean Water loans and http://www.state.sd.us/denr/DFTA/WWFunding/DWSRF/04DWSRFAnnualReport.pdf for Drinking Water loans.
http://www.state.sd.us/governor/