New York’s Environmental Facilities Corporation Board of Directors has approved $156 million in financial assistance for sewer and water infrastructure projects across the state.
The Board also approved interest-free financing totaling over $8 million to the Village of Akron in Erie County and the Village of Warsaw in Wyoming County to provide savings on debt service for these projects.
The Board's approvals include financings through the Clean Water State Revolving Fund and Drinking Water State Revolving Fund, and grants already announced pursuant to the Water Infrastructure Improvement and Intermunicipal Grant programs.
The approved project funding includes:
- City of Utica, Oneida County - $4.6 million grant and financing package for a sewer project that will make the city’s wastewater system more resilient during wet weather events and reduce risk of sewer overflows to the Mohawk River. The funding includes $3.4 million in interest-free financing and grant from federal Bipartisan Infrastructure Law funds.
- New York City Municipal Water Finance Authority - $150 million in short-term, market rate financing for the excavation and construction of Shafts 17B-1 and 18B-1 in City Tunnel No. 3, Stage 2 in Queens. This drinking water project will provide redundancy for the city’s water system and allow for better flow control and system management.
- Town of Minerva, Essex County - $1.5 million in short-term, market rate financing for the replacement of nearly 6,000 linear feet of water main across two drinking water project areas.
Refinancing projects
The Board approved long-term interest free financing totaling $8.2 million for wastewater treatment plant improvement projects in the Village of Akron in Erie County and the Village of Warsaw in Wyoming County. Short-term financing provides capital for design and construction of projects. Once project construction is completed, the short-term financing is typically refinanced to long-term financing for up to 30 years, saving municipalities significant interest expenses versus financing on their own.
Based on current market conditions, these long-term interest-free financings are projected to save local ratepayers an estimated $10.6 million in interest payments over the life of the financings.
