State panel OKs many loans, some grants to South Dakota water and sewer projects

Capitol News Bureau
KELO Money

PIERRE, S.D. (KELO) — Two dozen projects for improving local water and sewer systems across South Dakota, including some for communities in the Sioux Falls area, received state government’s financial help Monday.

The South Dakota Board of Water and Natural Resources gave out more than $13 million in grants and distributed more than $50 million in low-interest loans, including nearly $4 million in principal forgiveness for some small communities.

The board met by teleconference because of COVID-19 restrictions. Among communities awarded the financial packages were:

Dell Rapids — A $2,177,500 loan at 2.125 percent interest for 30 years and a grant up to $750,000 for sewer replacement work on several streets; and a $926,000 loan at 2.125 percent interest for 30 years for replacing water mains on several streets. Said city administrator Justin Weiland, “It is failing infrastructure. We want to get to it before it completely fails.”

Garretson — A $917,000 loan at 2.125 percent interest for 30 years and a grant up to $225,000 to finish a sewer project; and a $458,500 loan at 2.125 percent interest for 30 years and a grant up to $458,500 for drinking-water work on several streets.

Marion — A $420,000 loan at 2.125 percent interest for 30 years and a grant up to $865,000 for sewer work; and a $1,235,000 loan at 1.875 percent for 30 years, with up to $325,000 of principal forgiven, for drinking-water work.

Valley Springs — A $1,779,000 loan at 2.125 percent interest for 30 years for sewer work; and a $1,603,000 loan at 2.125 percent interest for 30 years for drinking water work, including re-coating the water tower.

Volga — A $2,405,000 loan at 2 percent for 20 years to reline a segment of the sewer system; and a $2,790,000 loan at 2 percent for 20 years to build a 750,000-gallon water tower. City administrator Jameson Berreth said the sewer work is part of a four-phase plan and the need for the water tower was identified in 2015.

Madison — A $3,287,000 loan at 2.125 percent for 30 years for storm sewer improvements, which city utilities commissioner Jeremiah Corbin described as the first of about 30 years of projects; and a $3,073,000 loan at 2.125 percent for 30 years for wastewater improvements.

Lake Preston — Grants of $2 million and $234,000 and a low-interest loan of $748,000 to replace sewer line; and grants of $2 million and $1 million, plus a low-interest loan of $2,610,000, with $1 million of principal forgiven, for drinking-water improvements and a new water tower.

Green Valley — The sanitary district, east of Rapid City along Rapid Creek, plans to replace its septic system and connect to the Rapid City treatment system. The state board gave grants of $2 million and $370,000 while the state Department of Environment and Natural Resources works with the U.S. Department of Agriculture on the remaining $9 million. Households will pay more than $100 a piece for the new system. Said Jason Reitz, the sanitary district president: “Not everybody’s happy about it, but they are aware of it.”

Others that received funding approval Monday included:

Grants, loans and principal-forgiveness packages to Montrose, Hurley, Tea, St. Lawrence and Webster;

Loans to Clay Rural Water System, DeSmet, Hudson, Lake Norden, Mellette, Mitchell, North Sioux City and Wolsey; and

Recycling and solid-waste grants to Day County Conservation District, Huron and Vermillion.

Go here for a deeper summary of each project

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