Executive Director David E. Zimmer, CFA
New Jersey Infrastructure Bank
New Jersey Infrastructure Bank
Have questions? Reach out to us directly.
NJ I-Bank Water Infrastructure News (WIN): Washington Township MUA borrows $1,307,739 in Water Bank Loans saving ratepayers approximately $1,080,281.
The Washington Township Municipal Utilities Authority (“WTMUA”) recently completed drinking water improvements that are being financed with approximately $1.3 million in loans from the NJ Water Bank, a low-rate funding program jointly administered by the DEP and the New Jersey Infrastructure Bank (“I-Bank”). This project qualified for a Water Bank “NANO.” The NANO Program offers small system borrowers, those systems which serve 10,000 customers or fewer, principal forgiveness (PF) funds for 50% of the loan amount, with PF capped at $500,000. Total savings for this project, including PF and lower interest costs, are estimated to be $989,158 over the 30-year term of the loan or 76% of the total project costs as compared to the WTMUA financing on its own. In addition, this project created an estimated 13 direct one-year construction jobs.
The WTMUA service area encompasses 2,547 service connections, providing water to approximately 8,300 customers across an estimated 69 miles of water mains. The current drinking water system includes fifteen production wells, five water storage tanks, eleven well houses, two booster stations, and one re-chlorination building. Due to aging infrastructure, the five water tanks were showing signs of corrosion requiring repairs and upgrades. Improvements were implemented to enhance their performance, including coating rehabilitation, maintenance, and other updates to meet the latest standards. In addition, this project formalized the decommissioning of Well SM-3.
The facility was upgraded to ensure drinking water safety and fire protection. This project helped bring WTMUA into compliance with regulatory standards set by the American Water Works Association, the Occupational Safety and Health Administration (OSHA), the National Fire Protection Association, the Society for Protective Coatings, and ASTM International (formerly the American Society for Testing and Materials). By utilizing resources from the Water Bank, the WTMUA achieved essential upgrades at low costs. The incentives received by the WTMUA saved 76% on total project costs, which they were able to pass on to their ratepayers.
This project was designed by Suburban Consulting Engineers and constructed by Manda Corporation.
Pictures courtesy of Suburban Consulting Engineers
Published March 3, 2025
Have questions? Reach out to us directly.