April 3, 2020
The Vermont Department of Environmental Conservation (“DEC”) and Vermont Bond Bank (“Bond Bank”) announced today the suspension of payments on municipal loans made through the Clean Water and Drinking Water State Revolving Funds (“CWSRF” and “DWSRF”).
The suspension is intended to provide relief to borrowers facing disruptions to revenue and expenses due to the fallout from COVID-19 mitigation measures.
The CWSRF provides low-interest loans for water quality protection projects to make improvements to wastewater treatment systems, control pollution from stormwater runoff, and protect sensitive water bodies.
The DWSRF provides subsidized low-cost financing to municipal and privately-owned public water systems for capital improvements that improve public health protection and facilitate compliance with the Safe Drinking Water Act.
Management of the programs is undertaken through DEC with the Bond Bank responsible for the administration of municipal funds and loans.
Annual payments that would otherwise be due between June 1st, 2020 and May 1st, 2021 will be suspended for a one year period. No interest or administrative fees will be charged during the interim period.
The suspension will not reduce the total amount due on the loan and borrowers may continue to make annual payments as planned without penalty.
Please contact either Terisa Thomas, DEC Senior Program Manager of Water Finance at terisa.thomas@vermont.gov or Michael Gaughan, Executive Director of Vermont Bond Bank at michaelg@vtbondagency.org for questions related to the announcement.
Learn more about the CWSRF and DWSRF at: https://dec.vermont.gov/water-investment.
About the DEC
The Department of Environmental Conservation is one of three departments in the Agency of Natural Resources.
The Department is responsible for protecting Vermont's natural resources and safeguarding human health for the benefit of this and future generations. Department employees are stationed throughout Vermont, including offices in Montpelier and at five regional locations located in Essex, Barre, St. Johnsbury, Rutland, and Springfield.
Please visit dec.vermont.gov for more information on the Bond Bank and its programs.
About the Bond Bank
Nearly fifty years ago, the Vermont General Assembly established the Bond Bank to provide loans for local infrastructure projects following a period of facilities construction across the state when the ability of local governmental units to secure long-term debt financing was at risk.
The solution embodied in the Bond Bank was a state instrumentality with a mandate to “foster and promote by all reasonable means” access to long-term debt financing while, to the extent possible, reducing related costs to taxpayers and residents.
Over the ensuing years, the Bond Bank has financed billions of dollars in local investment by purchasing and “banking” the bonds and notes of governmental units. The Bond Bank is governed by a five-member Board of Directors with four appointed by the Governor and the State Treasurer serving as an ex-officio member.
Please visit vtbondbank.org for more information on the Bond Bank and its programs.