LaFollette secures $1.4M loan forgiveness while Perryville seeks $1.1M for water upgrades

The Tennessee Local Development Authority meeting held on March 24, 2025, focused on loan approvals for local utilities, highlighting significant financial support for the city of LaFollette and Perryville Utility District.

The meeting began with a discussion on the city of LaFollette, located in Campbell County. LaFollette is set to receive loan forgiveness amounting to $1,437,000, reducing their loan principal for repayment to $1,437,500. The city ranks number 49 on the 2022 priority ranking list and conducted a public meeting in February 2025. LaFollette reported healthy operating revenues of $8,277,097, generated from 10,554 customers who are charged $44.35 per 5,000 gallons of water. Although the city filed its audit report late, they are working with the utility board, which submitted its audit on time. The city has an approved annual budget and does not require additional revenues to manage the loan. They have pledged their unobligated share of state-shared taxes to cover the maximum annual debt service, which amounts to $81,816 annually, totaling $639,000 over the loan period.

Following LaFollette, the meeting addressed the Perryville Utility District's request for a $1,100,000 loan with a 20-year term. Perryville, located in Decatur County, is classified as disadvantaged with an estimated tax payment index (ETPI) of 10, qualifying them for a reduced interest rate of 1.15%. The funds will be used for water meter replacements and improvements to water storage tanks. Perryville is also receiving 50% loan forgiveness, bringing their repayment balance down to $550,000. They ranked number 20, 21, and 143 on the 2022 priority ranking list and held their public meeting in November 2024.

The meeting concluded with a clear commitment to support local utilities through financial assistance, ensuring they can maintain and improve their services effectively.