Encinitas (CA) obtains low-interest loan for water plant renovation

Olivenhain Municipal Water District gets $17.8 Million state loan to help finance renovation of water plant.

This type of approach (government low-interest loans) is closer to being financially sustainable than a grant….however the money to capitalize the state revolving loan funds must come from somewhere…or else it is just printed (creating a currency risk) or it is borrowed from China, the Federal Reserve, or somewhere else.

The interest rate difference between what is paid to China and what the water district pays is the net cost to the rest of the country, plus the cost of government accounting and administration of the loans, which is not cheap.

Water districts should take advantage of such low interest loans (and grants) as long as they are available….but overall the current SRF system (water and wastewater) is not financially sustainable…..

   

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