The City of Kalona will save over $20,000 on a loan they took out for a lagoon restoration project. The Iowa Finance Authority and the Department of Natural Resources have announced that the interest rates on State Revolving Fund loans used for water quality initiatives are being reduced.
Kalona City Administrator Ryan Schlabaugh says the interest rate is dropping from 3% to 1.75% for the next ten years. This means the city is going to save about $2,000 a year and $21,000 over the next ten.
Kalona received the $500,000 loan in 2003 for the dredging and repair of the lagoons on the city’s south side.