The city of Gladbrook is set to see savings of more than $84,000 in interest payments on its 2011 water quality improvement project thanks to a recent State Revolving Fund (SRF) interest rate reduction.

According to an Iowa Finance Authority press release, more than 30 Iowa municipalities including the City of Gladbrook with current SRF loans for water quality projects will see a savings of more $7.6 million over the remaining life of their loans.

The interest rate on the loans is being reduced from 3 percent to 1.75 percent.

Gladbrook’s project was for the construction of a new elevated storage tank, installation of new water mains, and upgrades to the water treatment facility, according to Gladbrook City Clerk Jackie Stephenson.

Prior to project construction which began in 2011, Gladbrook’s existing 75,000 gallon water tower was in excess of 70 years old. The city was experiencing issues with both low pressure and poor water quality as a result.

A new 150,000 gallon elevated storage tank (water tower) was installed as part of the project as well as 7,900 feet of new water mains.

Gladbrook received a Community Development Block Grant worth $500,000 from the State of Iowa for the project.

The remainder of the project was funded through a 30-year Iowa SRF loan.

The loan is being paid back with water user fees.

SRF is one of Iowa’s primary sources for financing projects designed to improve Iowa’s water quality. Nearly 700 Iowa communities have received low-cost financing through SRF according to the recent press release.

The Iowa Finance Authority and the Iowa Department of Natural Resources jointly manage the fund.

“This rate reduction is possible due to the success of the State Revolving Fund and excellent financial management,” Iowa Finance Authority Executive Director Debi Durham said as part of the press release.