(Des Moines)– More than 100 Iowa cities that have borrowed money to improve their drinking water systems or their wastewater treatment plants will save $6.5 million thanks to lower interest rates.
Iowa cities can borrow from the state revolving fund, a program managed by the Iowa Finance Authority and the Iowa Department of Natural Resources. They announced Friday that the interest rate has been lowered on 20-year revolving loans to 1.75 percent from 3 percent. Because of the program’s success, the interest rate reduction applies to all existing loans that are at least 10 years old.
That will save Lake Park a little more than $9,500; Emmetsburg will save slightly more than $6,800 in interest costs.
