INDIANAPOLIS -  The Cities of Berne and Decatur will save residents millions in interest as both cities close low-interest loans today to finance wastewater improvements through the Indiana Finance Authority (IFA)'s Wastewater State Revolving Fund (SRF) Loan Program.

The City of Berne's North Sanitary Sewer Interceptor Project will provide a large capacity sewer to receive separate sanitary flow, eliminating combined sewer overflows in the system. By utilizing an SRF Program loan instead of a traditional loan to finance the $2,515,000 project, the City will save an estimated $397,000 over the 20-year life of the loan.

"With the savings by using SRF over a traditional loan, we ended up being able to construct a force main from the lift station to the wastewater treatment plant, which helps us relieve the overloading of our other lift station," said Mayor John Minch. "We ended up being able to finance an extra project, which, with IDEM's approval, will allow the city to eliminate two Combined Sewer Overflows. and we were able to keep rates reasonable, which is important during these hard economic times."

The City of Decatur's project will separate remaining combined sewers and upgrade the wastewater treatment plant to address capacity issues and future needs. By utilizing an SRF Program loan instead of a traditional loan to finance the project, the City will save an estimated $1.4 million over the 20-year life of the $9,276,000 loan.

"We had to raise rates, which was a tough pill to swallow with the way the cost of fuel and food is. The State Revolving Fund helped us finance the project at a lower rate so that we could save our ratepayers some money," said Mayor John Schultz. "We're on target to complete the project in another year and will meet all the federal and state mandates. We'll also be able to meet future capacity needs we may have."

"The SRF Loan Programs provide Indiana communities with a unique opportunity to save money while addressing much-needed wastewater and drinking water   improvements," said Jennifer  Alvey, Public Finance Director of the State of Indiana. "Governor Daniels is very focused on the health of Hoosiers. We are pleased to provide an economical way for communities to offer a cleaner environment and excellent quality of life for current and future residents of our State."

"I am glad Berne and Decatur were able to secure low-interest loans for their wastewater improvement projects," said Rep. Mike Ripley. "The new loans promise to save taxpayers millions of dollars in coming years, providing relief for communities struggling with the rising cost of providing essential services. It is certainly good to see Berne and Decatur utilizing smart financial options with the taxpayer foremost in mind."

Governor Mitch Daniels created the IFA in 2005 to more effectively manage State-related financial programs such as the Wastewater and Drinking Water SRF Programs under one entity.

Since the inception of the IFA, the SRF Programs have loaned more than $696 million to local communities at below-market interest rates, saving utility customers more than $119 million in interest.

"This program is helping protect our citizens in two ways," Sen. Travis Holdman said. "First, it is providing the infrastructure improvements needed to protect these communities from the health concerns associated with combined sewer overflows. Second, it is protecting them financially, providing a cost-effective way to get this done without adding a heavy burden to taxpayers."

Communities can learn more information about obtaining a SRF loan by contacting Bill Harkins at (317) 234-4862, wharkins@ifa.in.gov or by visiting http://www.srf.in.gov/.

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About the Indiana Finance Authority (IFA):
Governor Mitch Daniels created the IFA in 2005 to more effectively manage State-related finances under oneentity. The IFA manages various financial programs, which include the Indiana Brownfields Program and the State Revolving Loan Fund Programs.

About the State Revolving Fund (SRF) Loan Programs:
The IFA's State Revolving Fund (SRF) Loan Programs provide low-interest loans to Indiana communities for projects that improve wastewater and drinking water infrastructure. The Program's mission is to provide eligible entities with the lowest interest rates possible on the financing of such projects while protecting public health and the environment. SRF also funds non-point source projects that are tied to a wastewater loan.

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