Chesterfield will close a $7.1 million loan today through the Wastewater State Revolving Fund Loan Program to construct a new sewer system. By using the SRF Program instead of a traditional loan, the town will save customers more than $2 million in interest over the 20-year life of the loan.

“The project should, in the long run, limit our flow into Anderson’s sewage plant,” said Town Council President Jack Taylor. “We were treating rainwater with the sewage water, and we are eager to get the overflows eliminated. We tried our best to limit the increase to our customers’ bills.”

The project will construct an entirely new sanitary sewer west of Water Street and disconnect residences from the current combined sewer system.

The existing combined sewers will be converted to storm sewers, which will change the two combined sewer overflow, or CSO, outfalls to storm water outfalls.

CSOs occur when aging systems that combine sewer water and wastewater overflow to a local waterway during rain events.

“This project is important to the infrastructure and public health in Chesterfield,” said state Sen. Tim Lanane. “By taking advantage the state’s funding program, the town has done a tremendous job of saving taxpayer money.”

“The SRF Programs provide Indiana communities with a unique opportunity to save money while addressing much needed wastewater and drinking water improvements,” said Jennifer Alvey, public finance director of the State of Indiana . “Gov. Daniels is very focused on the health of Hoosiers. We are pleased to provide an economical way for communities to offer a cleaner environment and excellent quality of life for current and future residents of our state.”

“We are very fortunate to have programs like SRF so that communities like Chesterfield can embark on improvement projects that will benefit future economic and residential development without incurring heavy financial burdens,” said Representative Scott Reske.  

Gov. Mitch Daniels created the Indiana Finance Authority in 2005 to more effectively manage state-related financial programs such as the Wastewater and Drinking Water SRF Programs under one entity.

Since the inception of the IFA, the SRF Programs have loaned more than $492 million to local communities at below-market interest rates, saving utility customers more than $82 million in interest.