Box Elder receives drinking water loan - KOTA Territory News

Box Elder receives drinking water loan

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Gov. Dennis Daugaard says the state Board of Water and Natural Resources has approved a nearly $3.6 million low-interest loan from the EPA Drinking Water State Revolving Fund to Box Elder for a drinking water system improvement project.

“This loan will help Box Elder make necessary improvements to the city’s drinking water system to meet the peak water demands for a growing service population,” Gov. Daugaard said.

The project involves digging a new well to draw water from the Madison Aquifer, constructing a new pump house for pre-treatment, and adding a 1.5-million gallon water reservoir. The project  also includes adding 5,800 feet of 16-inch PVC and 4,100 feet of 10-inch PVC water main to connect the new reservoir to the city’s drinking water distribution system.

The total estimated cost of the project is $4,054,950. The loan terms are 3 percent interest for 20 years.

The EPA Drinking Water State Revolving Fund Program provides low-interest loans for public drinking water system projects. One of the program requirements is that some of the funds be provided as a subsidy. Principal forgiveness is a subsidy option that results in a reduced loan repayment amount for the borrower.

The board met Thursday and Friday in Pierre.

 

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