Iowa Finance Authority lowers interest rates, saves cities $1.9 million
Sixteen cities with state loans for water quality projects will save a combined $1.9 million in interest rates after the Iowa Finance Authority and the Iowa Department of Natural Resources lowered the interest rates for revolving loans. The rate fell from 3 percent to 1.75 percent. The state provides the low-interest loans for both drinking water and sewage projects, and has helped more than 500 communities since the program started. The loans have lower than typical upfront costs and no reserve requirement. The communities saving on the long-term loans include Johnston, Melcher-Dallas and Collins in Central Iowa.