Interest rate cut on state loans to cities

DES MOINES, Iowa (AP) — More than 100 Iowa cities that have borrowed money to improve their drinking water systems or their wastewater treatment plants will save $6.5 million thanks to lower interest rates.

Iowa cities can borrow from the State Revolving Fund, a program managed by the Iowa Finance Authority and the Iowa Department of Natural Resources. They announced Friday that the interest rate has been lowered on 20-year revolving loans to 1.75 percent from 3 percent. Because of the program’s success, the interest rate reduction applies to all existing loans that are at least 10 years old.

That will save Sioux City more than $905,000 on five loans, Mason City $630,000, and Fort Dodge $509,000 on four outstanding loans.

Other cities to realize big savings are Grimes, $328,000; Fairfield $273,000; and Oskaloosa $220,000.

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