CAPE, KELSO PROJECTS GET DNR LOANS

Wastewater treatment plant improvements in Cape Girardeau and Kelso are among those that will be financed through the Missouri Department of Natural Resources' State Revolving Loan Fund.

The latest financing totaled about $22.4 million for projects in Arnold, Byrnes Mill, Cape Girardeau, Hannibal, Holts Summit, Kelso, Kennett and St. Joseph.

The revolving fund is a perpetual loan program operated by DNR that provides subsidized, low-interest loans to communities and public sewer districts statewide for the construction of wastewater treatment facilities.

Federal funds provide 80 percent of the loan pool, with a 20 percent state match provided through the sale of state Water Pollution Control Bonds.

The effective interest rate on the latest community bonds was 1.75 percent after the program's 70 percent interest subsidy is applied.

"These extremely low-interest rates allow communities to achieve environmental compliance at affordable user rates," said David Shorr, director of the Department of Natural Resources.

"Missouri's State Revolving Fund program has now emerged as a national leader and, with the continued support of the legislature, will provide benefits to the state for generations to come."

Missouri voters passed the Water Pollution Control Bonds in November 1988. The Missouri General Assembly must authorize the bonds. To date, the program has financed $262 million worth of construction statewide.