The City of Ogallala, Nebraska, is finalizing $7.5 million in financial assistance through the state’s State Revolving Fund (SRF) programs to upgrade its aging wastewater treatment facility.

The funding includes more than $1.625 million in loan forgiveness and a below-market interest rate of approximately 2% on the remaining financing. Nebraska officials estimate the financing structure will save Ogallala residents between $3 million and $4 million over the life of the loan.

The project will address components at the wastewater treatment facility that have exceeded their useful life and is intended to improve the reliability of wastewater service.

Nebraska Department of Water, Energy and Environment Director Jesse Bradley said the project demonstrates how state and local governments can work together to address infrastructure needs.

Nebraska’s SRF programs have provided more than $1.75 billion through 713 loans to 326 communities since their inception. DWEE expects to fund approximately 40 additional projects over the next two years, totaling about $220 million.