A total of 29 Iowa communities will save $1.3 million over the life of their loans by using the state’s revolving fund, the Iowa Finance Authority and the Iowa Department of Natural Resources reported. That’s because their interest rate is dropping to 1.75 percent from 3 percent. The fund help cities pay for drinking water treatment and sewage systems. Some 600 communities, plus farmers and watershed groups, have used the loans over the years. “The state revolving fund has saved Iowa communities nearly $16 million in interest payments by reducing the interest rate for loans that are more than 10 years old,” Iowa Finance Authority Executive Director Dave Jamison said in a statement.