Arkansas communities get $42 million in state loans to bolster water systems

Water systems serving more than 22,000 Arkansans in six communities will receive over $42 million in financial assistance from state programs for water and wastewater projects.

The Arkansas Natural Resources Commission approved the loans at its Feb. 28 meeting. The projects receiving assistance are:

• Helena West-Helena in Phillips County, an emergency $100,000 loan from the Water Development Fund and an $11 million loan from the Drinking Water State Revolving Loan Fund. The current customer base for this project is 5,500.
• Mena in Polk County, an $11.6 million loan from the Clean Water State Revolving Loan Fund. The current customer base is 5,558.
• Mountainburg in Crawford County, a $7 million loan from the Drinking Water State Revolving Loan Fund. The current customer base is 6,184.
• Mulberry in  Crawford County, a $7.5 million loan from the Drinking Water State Revolving Loan Fund. The current customer base is 1,543.
• Tri County Regional Water Distribution Distric in Pope County,  a $5 million loan from the Drinking Water State Revolving Loan Fund. The current customer base for this project is 3,500.

The interest rates on the loans vary depending on the term, from 3.5% for a 10-year loan to 4.5% for a 30-year term, according to the Division of Natural Resources website. The rates include a 1% origination fee.

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Helena-West Helena’s water system has been plagued with problems for more than a year. In January, about 3,500 customers lost service due to leaks and problems with city wells, and boil water orders were issued. Some residents went without running water for two weeks.

Secretary of Agriculture Wes Ward said his department, which includes the Natural Resources Division, will continue to work with communities across the state to address deficiencies in water and wastewater systems.

“The action regarding Helena-West Helena continues to demonstrate the governor’s ongoing effort to address a difficult situation, and we are proud to partner with her,” he said in a statement.