EFC Announces $32 Million For Water And Sewer Projects

Interest-free State financing saves eleven communities millions of dollars in interest costs.

ALBANY, NY (12/11/2007)(readMedia)-- Eleven communities around the State are receiving a total of $32.6 million in interest-free State financing for water and sewer projects, New York State Environmental Facilities Corporation (EFC) President David Sterman announced today. The funding, which is provided through the New York Clean Water and Drinking Water State Revolving Funds (SRFs), will save these communities a combined total of $11.4 million in interest costs.

Communities receiving assistance include the: Village of Clayton, Village of Antwerp and Town of Rutland, Jefferson County; Chemung County; Town of Ticonderoga, Essex County; Westchester County; Town of North Hempstead, Nassau County; Town of Claverack, Columbia County; Village of Malone, Franklin County; Village of Pulaski, Oswego County; and Village of Sherburne, Chenango County.

“The interest-free financing provided through the State Revolving Fund Program will go a long way in advancing Governor Spitzer’s goal of revitalizing our communities,” said Mr. Sterman. “This funding makes it more affordable for these communities to undertake important projects that provide residents with safe drinking water and prevent water pollution.”

Since 1991, the Clean Water SRF has provided approximately $12.68 billion in financing and $1.19 billion in subsidies for more than 1,300 water quality related environmental projects in New York State. It is administered by EFC in partnership with the New York State Department of Environmental Conservation (DEC). The Drinking Water SRF is jointly administered by EFC and the State Department of Health (DOH). Since 1997, the program has provided more than $2 billion in low-cost financing and grants, and $135.3 million in subsidies for 541 drinking water improvement projects throughout the State.

DEC Commissioner and EFC Chair Pete Grannis said, "The financing announced today is another example of how we can partner with communities to help them with important projects that will protect the environment and enhance their quality of life.”

State Health Commissioner Richard F. Daines, M.D. said, “The New York Drinking Water State Revolving Fund will help these communities make the necessary improvements to their drinking water systems so that residents will have access to safe and healthy drinking water for years to come.”

In 2003, DOH conducted a drinking water infrastructure needs assessment which showed that New York State communities together require almost $15 billion in drinking water system upgrades in order to achieve current federal drinking water standards. DOH is currently conducting USEPA's 2007 drinking water infrastructure needs assessment to further examine the water system upgrade needs of New York State communities. In 2004, EFC conducted a wastewater infrastructure needs assessment which found that New York State communities require more than $24 billion in infrastructure upgrades to wastewater collection, transportation and treatment facilities in order to meet current federal water quality standards. Conducted every four years, EFC is now collecting data for the 2008 USEPA Clean Water Needs Assessment Survey.

Due to reductions in federal funding and significant increases in construction costs, EFC believes that the cost estimates provided in 2003 and 2004 will increase dramatically by the end of the decade.

For additional information on the Clean Water and Drinking Water SRF programs, please visit www.NYSEFC.org.

FINANCING RECIPIENTS

Clean Water SRF - Long-Term Interest-Free Financings

Village of Clayton, Jefferson County

Financing Amount: $3,216,530

Finances a collection sewer extension on the Westside of the Village to prevent sewage discharges from failing on-site septic tank systems. This will protect the water quality of French Creek and the St. Lawrence River. Project construction is expected to be completed in May 2008. Resulting savings with SRF financing over 30-year term: $2,184,811.

Town of Rutland, Jefferson County

Financing Amount: $1,179,858

Finances costs for collection sewers, a pump station and force main in the Felts Mills Sewer District to help protect the water quality of the Black River. The project was completed in October 2005. Resulting savings with SRF financing over 30-year term: $800,988.

Clean Water SRF - Interest-Free Short-Term Financings

Chemung County

Financing Amount: $892,535

Finances costs associated with construction of the Curtis Street Service Area Sanitary Sewer Extension project in the Town of Southport. This project will serve 170 residential properties, completing the final phase of sewer construction for this area. Project construction is expected to be completed in June 2008. Resulting estimated savings with SRF financing over average term of 1.5 years: $46,858.

Town of Ticonderoga, Essex County

Financing Amount: $2,420,062

Finances a new wastewater collection facility. Currently, both year-round and seasonal residences are served by individual on-site sub-surface septic systems that are inadequate. This project will improve the water quality of Lake George. Project construction is expected to be completed in May 2009. Resulting estimated savings with SRF financing over average term of 1.5 years: $127,053.

Westchester County

Financing Amount: $2,246,229

Finances a cost increase for a new automated scum removal system for the Yonkers Joint Wastewater Treatment Plant, previously financed with long-term SRF financing. Project construction is expected to be completed in July 2009. Resulting estimated savings with SRF financing over average term of 1.5 years: $117,927.

Town of North Hempstead, Nassau County

Financing Amount: $11,219,000

Finances upgrades and improvements to the wastewater treatment plant and the rehabilitation to the plant and outfall pipe. Project construction began is expected to be completed in 2011. Resulting estimated savings over average term of 1.5 years: $588,997.

Drinking Water SRF - Interest-Free Long-Term Financings

Town of Claverack, Columbia County

Financing Amount: $2,659,616

Finances a new water district to serve residents who were served by the City of Hudson’s raw water transmission main, and a mobile home park and several areas that relied on insufficient private wells. The project included a new distribution system, pump station, softening and disinfection treatment, storage tank and necessary modification to the Town of Greenport’s well field. Project construction was completed in December 2006. Resulting savings with SRF financing over 30-year term: $1,940,703.

Village of Malone, Franklin County

Financing Amount: $4,135,543

Finances new water supply wells that replaced an unfiltered surface water supply that did not comply with State standards. Also, an uncovered finished water reservoir was replaced with a new covered storage tank. Project construction was completed in November 2006. Resulting savings with SRF financing over 20-year term: $1,874,847.

Village of Pulaski, Oswego County

Financing Amount: $694,539

Finances construction of a new pump station and chlorination system that provides adequate disinfection and chlorination contact time for the water supply. Project construction was completed in December 2006. Resulting savings with SRF financing over 20-year term: $328,502.

Village of Sherburne, Chenango County

Financing Amount: $1,950,000

Finances a new ground water source, transmission, and storage tank, and upgrades to the distribution system. The project addressed issues of inadequate supply and storage capacity, pumping equipment failure, and aged and undersized distribution mains, and was completed in July 2007. Resulting savings with SRF financing over 30-year term: $1,434,289.

Village of Antwerp, Jefferson County

Financing Amount: $2,019,467

Finances a new groundwater source and storage tank, and upgrades to the treatment building and distribution system. The Village needed a new water supply because it could no longer obtain its water from springs located on the Ft. Drum Army Base. The project was completed in 2006. Resulting savings with SRF financing over 30-year term: $1,445,329.

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