City receives $14.2 million from Clean Water State Revolving Fund
Cape Coral just received more than $14.2 million from the Clean Water State Revolving Fund to continue the city’s utilities expansion project to provide potable water, sanitary sewer and irrigation water infrastructure to residences and businesses.
The disbursement by the Florida Department of Environmental Protection brings the total loans from the fund for the ongoing project to $71 million. The city also is receiving more than $17 million in loans from the Drinking Water State Revolving Fund.
“From both funds we’ve received about $90 million,” said Paul Clinghan, the city’s UEP manager. “The interest rates are from a low of 1.93 percent to a high of 2.42 percent. It averages out to around 2 percent, which is pretty good.”
The funds are being used to finish out the Southwest 6-7 expansion project.
Clinghan explained that the utilities assessments that homeowners pay are used to repay the revolving fund loans. The Clean Water fund drives the wastewater and irrigation phase of the project while the Drinking Water fund takes care of the drinking water phase.
“We have to get through our planning and design stage for North 1-2 in order to show the state and continue receiving the loans for that area,” Clinghan said.
Southwest 6-7 expansion will serve 5,200 residential lots now utilizing septic systems and private water wells.
“The state revolving funds allow the city of Cape Coral to continue moving forward with these essential utilities projects,” said Clinghan. “These loans enable the city to keep the overall costs to our property owners lower than other available financing options.”
Established in 1989, the Clean Water State Revolving Fund program offers low-interest financing for construction of wastewater and stormwater facilities in compliance with the Clean Water Act. The program has handed out more than $1.4 billion in loans for 96 projects statewide in the last five years. The program is funded by federal grants, state funds, loan repayments and interest earnings.
Repayments from earlier loans revolve into new loans to continue operating.