(Des Moines)– Officials with the Iowa Finance Authority say the State’s Revolving Fund, or SRF, has saved the city of Spencer $43,226 in interest by being able to refinance a loan through the agency.
In 2001 the city of Spencer borrowed 1.5 million dollars at 3.84 percent interest. Recently, the Iowa Finance Authority offered the city the option to refinance its loan to a lower, three percent interest rate. Officials say that will allow the community and its citizens to save $43,226 over the remaining life of the loan, which is due in 2021.
Two funds through the SRF, one for drinking water and one for wastewater and pollution control, have provided low-cost financing worth more than 1.5 billion dollars to Iowa communities, farmers, watershed groups and others. The program is operated jointly through the Iowa Department of Natural Resources and the Iowa Finance Authority.
The SRF receives federal grants that allow for low-interest loans to help communities affordably build or update water facilities.
A number of other cities in the region, including Spirit Lake, have utilized the SRF as well for similar projects.
