 | Vol. 3 No. 3 Winter 1995 |
| A Newsletter About New Jersey's Water Quality Programs |
The certification by DEP and the Trust means the projects have all met the program's requirements and are ready to receive funding for construction. DEP has allocated $33 million in zero-interest loans for 20-year terms, and the Trust held a bond sale on October 18, 1995, providing $35 million in low-interest loans with 20-year terms. Two series of bonds were sold. The tax exempt Series A bonds were purchased by Prudential Securities Inc. The taxable Series B bonds were purchased by First Fidelity Bank. The true interest cost to the loan recipients were 5.19 and 6.87 percent respectively. The combination of funding provides applicants with loans for 100 percent of the allowable project costs at half the market rate (2.6 percent for most of this year's project sponsors), resulting in annual savings of 30 percent when compared to the cost of each participant obtaining its own financing. Loan closings are scheduled for November 1995.
"These projects will improve water quality and protect the environment by upgrading antiquated sewage treatment facilities or expanding systems to eliminate failing septic tanks," said DEP Commissioner Robert C. Shinn, Jr. "The financing program ensures projects not only meet federal and state requirements, but also offer the most cost effective, environmentally sound solutions to wastewater infrastructure problems in the state."
The program provides assistance to local governments for wastewater treatment facility improvements, sludge treatment, collection and interceptor sewers, and combined sewer overflow abatement projects.
The 15 certifications include 10 new projects and five supplemental loans for increased allowable costs from previous projects. Recent amendments to the New Jersey Wastewater Treatment Financing Program's rules allow project sponsors to receive 10 to 15 percent more funding through increased planning and design allowances, increased administrative cost amounts, and project contingency funding to cover unexpected expenses. (See table for detailed description of rule changes).
The certified list includes five "Second Chance" projects, a program started last year which expedites review for applicants meeting the department's criteria, but proceeding independently toward construction. "This allows more projects to move forward and receive funding at a faster pace," said Nicholas Binder, Assistant Director of DEP's Municipal Wastewater Assistance Program.
This year's list increases the total amount of projects certified under the Wastewater Treatment Financing Program, since 1987, to over $1.2 billion. Last year, $87 million in DEP and Trust loans were made to 14 projects. For State Fiscal Year '97, 29 applicants totaling more than $500 million in projects are pursuing funding.
The program's priority system ranks eligible projects based on the type of discharge and the existing water quality conditions. There are 301 projects on the existing wastewater treatment list.
For more information on the loan program, contact Assistant Director Nicholas Binder, P.E., P.P., of Municipal Wastewater Assistance Program, at (609) 292-8961.
Camden County MUA (Camden County) - Funding Amount: $4,440,670
Description: Consists of the Phase II treatment facility expansion and the construction of several interceptor systems, including Big Timber Creek, North Branch-Cooper River, and Oaklyn.
Musconetcong SA (Morris County) - Funding Amount: $2,140,877
Description: Includes the expansion of the existing treatment plant to 3.63 million gallons per day. The additional capacity will provide sewer service to the areas around Budd Lake and Lake Hopatcong.
Mount Olive Township (Morris County) - Funding Amount: $6,800,000
Description: Includes collection and conveyance system construction to serve the existing developed areas around Budd Lake, eliminating the use of septic systems. Flows will be conveyed to the expanded Musconetcong SA treatment plant.
Riverside SA (Burlington County) - Funding Amount: $301,460
Description: Includes upgrading the existing 1.0 MGD treatment plant to achieve required effluent limits. The construction of a new outfall is also included.
Pequannock River Basin RSA (Morris County) - Funding Amount: $1,178,120
Description: Replacement of older interceptor sewer mains, providing adequate hydraulic capacity. This will correct structural deficiencies, eliminating excessive infiltration/inflows existing within the Butler, Bloomingdale, Kinnelon and Riverdale regional sewer system.
Atlantic County UA (Atlantic County) - Funding Amount: $5,407,980
Description: Rehabilitation of older interceptor sewer mains, providing adequate hydraulic capacity and, in some locations, correcting structural deficiencies. Also included is the upgrade of four pump stations and the replacement of one.
Gloucester County UA (Gloucester County) - Funding Amount: $10,394,075
Description: Includes the construction of a pump station, a one million gallon equalization tank, and 25,120 linear feet of force main to provide adequate conveyance capacity for existing and future growth. The wastewater will be conveyed to the Gloucester County UA Regional STP for treatment and disposal.
Gloucester County UA (Gloucester County) - Funding Amount: $11,267,665
Description: Consists of the upgrade of Mantua Creek Pump Station and the construction of 20,000 linear feet of force main to increase the capacity of the GCUA conveyance system.
Moonachie Borough (Bergen County) - Funding Amount: $405,402
Description: Includes the upgrade of electrical and control equipment at the Moonachie Road Pumping Station and the replacement of pumps at the Moonachie Avenue Pumping Station.
Newark City (Essex County) - Funding Amount: $17,791,816
Description: Includes structural repairs or replacement of combined sewer lines throughout the City.
Logan Township MUA (Gloucester County) - Funding Amount: $3,000,000
Description: Consists of treatment plant refurbishment and modernization of process units, controls, and disinfection facilities; and the mitigation of infiltration/inflow problem areas.
Mantua Township MUA (Gloucester County) - Funding Amount: $1,604,784
Description: Consists of the construction of sewage collection systems, pump stations, and force mains to collect sewage from the Mantua Heights and Barlow Avenue areas for treatment and disposal at the Gloucester County Utilities Authority Regional STP.
Tewksbury Township (Hunterdon County) - Funding Amount: $407,922
Description: Consists of the rehabilitation of the "Hunter's Glen" community septic system with the reconstruction of four disposal fields and a pressure distribution system.
Clinton Township (Hunterdon County) - Funding Amount: $258,000
Description: Includes the construction of sewage collection lines to convey flows from a failing community septic system (Twin Oaks Development) to an existing wastewater conveyance and treatment system.