Department of Natural Resources awards $387,000 to Anderson and New Lond…

Cities will plan and design drinking water system improvements

JEFFERSON CITY, MO, AUG. 30, 2024 - The Missouri Department of Natural Resources has awarded loans totaling $387,000 to the cities of Anderson in McDonald County, ($225,000) and New London in Ralls County ($162,000). The cities will use their loans for planning and design work related to ongoing drinking water improvement projects.

For both communities, these funds will provide vital interim financing to cover early engineering and administrative costs while they work with the department to secure larger loan and grant funding packages for their respective drinking water projects. When completed, Anderson's construction project is expected to total $3.3 million and is estimated to start in 2025. New London's project is expected to cost nearly $3.6 million and should also start in 2025.

The early planning phases of infrastructure projects often represent a significant financial burden for cash-limited communities with drinking water system needs. The planning and design loan program's goal is to provide a cost-effective alternative to expensive private financing that will allow communities to develop and deliver vital infrastructure projects for their citizens. These loans bear no interest and come with a five-year term. Anderson's funding is estimated to save the city's ratepayers approximately $29,900 in interest, while New London's loan should save ratepayers approximately $22,500.

"An important part of our work is helping Missouri communities maintain and improve their aging water treatment systems," said Dru Buntin, director of the Department of Natural Resources. "One way we do that is by offering financial assistance through programs like the Drinking Water State Revolving Fund. Through this and other available assistance programs, we can help protect public and environmental health and improve the quality of life for Missourians."

The department's Drinking Water State Revolving Fund finances improvements to water treatment plants, distribution systems, water storage and supply facilities, along with interconnection or consolidation projects. Communities that borrow from the fund benefit from the below-market interest rate and from assistance provided throughout their project from a project manager.

The department's Financial Assistance Center is committed to working with communities to assist with water and wastewater infrastructure improvement projects. This project will be funded wholly or in part with monies received from the U. S. Environmental Protection Agency.

For more information on wastewater and drinking water funding opportunities, visit dnr.mo.gov/water/what-were-doing/state-revolving-fund-srf.