Missouri Department of Natural Resources awards $226,000 loan to Palmyra for drinking water improvements

PALMYRA, Mo. — The Missouri Department of Natural Resources recently awarded a $226,000 loan to the City of Palmyra for planning and design work related to its ongoing drinking water improvement project.

These funds will provide interim financing to cover early engineering and administrative costs while the city works with the department to secure a larger loan and grant funding package for its drinking water project. The larger project is estimated to cost approximately $3.3 million and construction is estimated to start in 2026.

The early planning phases of infrastructure projects often represent a significant financial burden for cash-limited communities with water and wastewater needs. The planning and design loan program’s goal is to provide a cost-effective alternative to expensive private financing that will allow communities to develop and deliver vital infrastructure projects for their citizens. These planning and design loans bear no interest and come with a five-year term. The funding provided by the department is estimated to save the city’s ratepayers approximately $30,000 in interest.

“Grants and low-interest loans through the state revolving fund help Missouri communities like Palmyra fund treatment system improvements that they might not have been able to undertake otherwise,” Dru Buntin, director of the Missouri Department of Natural Resources, said in a press release. “Projects like this ultimately help protect public health and the environment.”

The department’s drinking water state revolving fund finances improvements to water treatment plants, distribution systems, water storage and supply facilities, along with interconnection or consolidation projects. Communities that borrow from the fund benefit from the below-market interest rate and from assistance provided throughout their project by a project manager.

For more information on wastewater and drinking water funding opportunities, visit dnr.mo.gov/water/what-were-doing/state-revolving-fund-srf.