Senator Saland Announces Low-interest Loan For $810,310 Awarded To Greenport For Clean Water Financing

Stephen M. Saland

August 02, 2005

Senator Steve Saland (R,C Poughkeepsie) joined Governor Pataki in announcing that the Town of Greenport has been awarded a loan in the amount of $810,310 for financing for infiltration/inflow corrections to the sanitary sewer system that helps to eliminate raw sewage bypasses and improves treatment efficiency. This will protect the water quality of Claverack Creek. The project was completed in May 2005.

Borrowers of Clean Water SRF loans receive an effective interest rate of 1.94% percent, and Drinking Water SRF financing recipients receive an effective interest rate of 2.59% percent.

This financing is made from the proceeds of bonds issued by the New York State Environmental Facilities Corporation (EFC) on behalf of its borrowers. These bonds are not obligations of the State of New York. By issuing bonds and leveraging its capital, EFC is able to provide two to three times more capital for water, sewer and water quality protection projects. The corporation's bonds are rated triple-A by all three major rating agencies, thus enabling the corporation to obtain much lower interest rates than if borrowers sold their own bonds. Most of the funding recipients announced today previously received interest-free, short-term SRF loans, which are being converted into the long-term SRF financing.

The Clean Water SRF, administered by EFC and the State Department of Environmental Conservation (DEC), offers short-term interest-free loans and long-term reduced interest rate financing for eligible water pollution prevention projects. Long-term loans are issued by EFC at a subsidized interest rate of one-half the prevailing interest rate. Since the program’s inception in 1989, the State has provided communities with more than $11.2 billion in Clean Water SRF financing for 1248 projects that prevent water pollution.

"I am very pleased that Governor Pataki has made this long term, low interest loan available to the Town of Greenport," said Senator Saland. "The ability to access this low interest financing provides a significant savings to the Town and in turn taxpayers."