PIERRE, S.D. – Gov. Dennis Daugaard says the state Board of Water and Natural Resources has approved a $180,000 Clean Water State Revolving Fund loan to Chancellor for a water meter replacement project.
The loan includes $90,000 in principal forgiveness, which leaves $90,000 for loan repayment. Loan terms are 2.25 percent for 10 years.
The loan will be administered through the Department of Environment and Natural Resources.
“I am pleased to announce that Chancellor will receive this assistance,” said Gov. Daugaard. “This funding will help Chancellor replace old water meters and allow the town to better monitor its drinking water system.”
The project involves replacing 131 existing water meters that are more than 20 years old with an automatic meter reading system.
The loan will fund the estimated cost of the project.
The State of South Dakota and the U.S. Environmental Protection Agency fund the Clean Water State Revolving Fund Program, which provides low-interest loans for wastewater, storm water, water conservation, and nonpoint source projects. Principal forgiveness is a subsidy option that results in a reduced loan repayment amount for the borrower.
The board met last Wednesday and Thursday in Pierre.