A $9.4 million low-interest loan from the state of Missouri is not only helping Neosho make necessary improvements to its drinking water system, it also helping prepare the city for continued economic growth, Gov. Jay Nixon said today.
The Governor was in Neosho to announce the loan from the Missouri Department of Natural Resources, and was joined by city officials and Natural Resources Director Sara Parker Pauley. Gov. Nixon noted that a city's economic growth is tied directly to how well its infrastructure can support the growth - and access to clean and affordable water is a top factor in growth.
"Neosho is a growing community, and these upgrades will ensure that the city has the infrastructure to support that continued expansion," Gov. Nixon said. "Our economy is moving in the right direction, and this investment will help keep this region moving forward. This is a smart investment in the future of Neosho."
The Department of Natural Resources issued the low-interest loan to the city to replace aging drinking water distribution lines, provide a backup power supply for the pump stations, upgrade the treatment plant to meet current and future standards, and add chemical feed systems to all wells. Replacing leaking water mains is expected to save millions of gallons of treated drinking water.
Gov. Nixon also noted that the low-interest nature of the loan would save Neosho more than $4 million during the life of the loan, compared to traditional financing. The loan will cover the estimated cost of the entire project, which is expected to be completed by next January.
"Replacing antiquated infrastructure, including these six miles of deteriorating water mains, will not only conserve valuable natural resources, but also result in a cost savings to the city and its water customers," Director Pauley said.
The Drinking Water State Revolving Fund provides significant funding to assist communities with their drinking water infrastructure needs. A portion of the funding will be targeted toward green infrastructure, water and energy efficiency and environmentally innovative projects. This funding will help the city protect residents and the environment by making needed drinking water improvements.
The Department of Natural Resources' Water Protection Program will administer the loan funds. The department is committed to working closely with communities to assist with funding efforts that support water and wastewater infrastructure improvement projects as well as provide a financial savings.