The state Board of Water and Natural Resources has approved a loan of $657,000 for Blunt drinking water system improvements.
The loan comes from the Drinking Water State Revolving Fund and includes $207,000 in principal forgiveness.
The project includes replacing old, inaccurate water meters with 144 new meters so the city can better monitor and serve water to its customers. In addition, four fire hydrants currently served by four-inch lines will be upgraded to six-inch service lines to increase firefighting capacity. Outdated water valves and curb stops will also be replaced. The loan will cover the total cost of the project. Loan terms are 2.25% for 20 years.
This round, the state Board of Water and Natural Resources approved almost $22 million ($21,992,800) for water, wastewater, watershed, recycling and solid waste projects. The total includes $871,000 in grants, just over $21 million ($21,121,800) in low-interest loans and $925,000 in principal forgiveness
Loans will be administered through the South Dakota Department of Environment and Natural Resources.
The State of South Dakota and the U.S. Environmental Protection Agency fund the Drinking Water State Revolving Fund Program, which provides low-interest loans for public drinking water system projects. Principal forgiveness is a subsidy option that results in a reduced loan repayment amount for the borrower.
